Form Wrc Instructions - Worker Retraining Tax Credit Application

credits exceed the annual fiscal limitation of $2,500,000,

“Retraining” means an upgrade in training for existing

each employer shall be granted a pro rata amount as

employees, which is identified as essential to the production

determined by the Department of Taxation.

or distribution of a product, rendering services or retraining

provided through an apprenticeship agreement approved by

the Virginia Apprenticeship Council.

Extension of time for filing: If the tax return upon which this

credit will be claimed is due on or before May 1, file an

“Standard Fringe Benefits” means the benefits that a

extension of time to file along with payment of the tentative tax

particular employer offers to its full-time employees.

due, if any, or file an amended tax return after obtaining the

“Training Costs” means instruction, instructional materials,

information needed to compute the credit.

facilities fees, and other costs determined to be necessary to

the delivery of the training. Trainee wages and curriculum

Step 3

development costs are not covered.

Claim Worker Retraining Credit on your tax return

WRC

NSTRUCTIONS

OMPLETING

ORM

After Form WRC is completely processed and you have been

When completing Form WRC, remember that claiming the

notified of the authorized credit, claim the credit on the

credit is a multi-step process. Complete Form WRC and the

applicable Virginia tax return, the same as any other credit

required schedules using the definitions earlier in these

See the instructions for the Virginia tax return on which the

instructions. To assist you in completing Schedules 1 and 2

credit will be claimed for computation and attachment

correctly, review these definitions from page 2: Eligible

details.

worker retraining, qualified employee, noncredit courses,

retraining, standard fringe benefits and training costs.

EFINITIONS

I - D

ART

ESCRIPTION

USINESS

CTIVITIES

“Eligible Worker Retraining” means the retraining of a

qualified employee that promotes economic development

Enter the Standard Industrial Code (SIC) of the business and

accomplished in the form of (i) noncredit courses at any of

describe its principle activity of the business.

the Commonwealth’ s community colleges or private schools

or (ii) worker retraining programs undertaken through an

Part II - Credit Based On Noncredit Courses From A

apprenticeship agreement approved by the Virginia

Community College Or Private School

Apprenticeship Council. Retraining of a qualified employee

Credit will be granted for retraining through noncredit courses

will promote economic development when the employment

approved by the Virginia Department of Business

brings new income into the Commonwealth of Virginia,

Assistance.

stimulates additional employment, improves existing

processes, products or services or is the basis for further

Complete Schedule 1 (Form WRC), using the instructions

economic growth.

below, then enter the total number of courses and total credit

requested for training costs for approved courses in the

“Noncredit Courses” include, but are not limited to:

space provided. Complete a separate Schedule 1 for each

< specific job-related skills/studies,

course for which the credit is requested.

< computer training due to process or equipment change

of entry-level computer skills (ongoing computer

Schedule 1 (Form WRC) Instructions

software upgrades are not included),

Enter the course information requested, then list qualifying

< continuous improvements such as team building and

employees for whom employee retraining was provided

quality training,

through noncredit courses from a Virginia community college

< management and supervisory training,

or private school. See the definitions listed in these

< safety and environmental training programs, and

instructions before completing this schedule to ensure that

< credit or noncredit approved apprenticeship courses.

the training costs and employees listed qualify. If additional

space is needed, attach a separate page.

“Qualified Employee” means an employee of an employer

eligible for the Worker Retraining Credit who works in a full-

Use the following instructions when entering information

time position requiring a minimum of 1,680 hours in the

on qualifying full-time employees.

normal year of the employer’ s operation and if the standard

fringe benefits are offered by the employer to the employee.

Col. A: Enter the name and social security number of each

Employees in seasonal or temporary positions are not

qualifying employee.

qualified for this program. Employees eligible to take credit

Col. B: Enter the date that the employee was hired.

or non-credit courses undertaken through a registered

Col. C: Enter the name of the qualifying non-credit course

apprenticeship agreement must be employed in a full-time

and the date that training began.

position requiring a minimum of 1,924 hours in the normal

Col. D: Enter 30% of the qualifying training cost incurred for

year of the employer’ s operation unless otherwise approved

noncredit courses at a community college, or, if

by the Virginia Apprenticeship Council. A Qualified

training was from a private school, enter the

Employee shall not be (i) a spouse, child, grandchild, parent

qualifying training cost for noncredit courses, up to

or sibling of an employer or in the case of a corporation, an

$100. Note that the maximum credit involving

individual that owns five percent or more of the corporation’ s

training from a private school is $100 per employee,

stock and (ii) shall not own, directly or indirectly, five percent

regardless of the number of courses. Check the

or more of the corporation’ s stock. Qualified employees also

box if training was from a private school. Attach a

include those employees undertaking credit or non-credit

schedule showing training cost computation.

worker retraining courses through an apprenticeship

Col. E: Approved cost: This column will be completed for

agreement approved by the Virginia Apprenticeship Council.

you during processing. Leave it blank.

Form Wrc Instructions - Worker Retraining Tax Credit Application - 1999 Page 2

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