Instructions For Form Wrc - Worker Retraining Tax Credit Application printable pdf download

Form WRC Instructions

Virginia Department of Taxation

1901043 Rev 07/00

Instructions For Form WRC, Worker Retraining Tax Credit Application

ENERAL

NFORMATION

File Form WRC, completing Parts I, III and Schedule 2(see

The Worker Retraining Tax Credit may be claimed by employers

EXCEPTION below), with the Department of Taxation, Capped

who provide qualifying retraining for their employees through

Credit Unit, P. O. Box 715, Richmond, VA 23220-0126, to

noncredit classes approved by the Virginia Department of

determine program applicability and authorized credit.

Business Assistance(VBDA) or through an apprenticeship

agreement approved by the Virginia Apprenticeship Council. For

qualified employees who attend Virginia community colleges the

EXCEPTION: If applying for retraining credits for

employer can claim 30% of all training costs. For those

noncredit courses and an apprenticeship program, complete

employees who attend private schools, the employer may claim the

all of Form WRC and file it with VDBA. After processing

actual costs up to $100 per qualified employee. Qualifying

Schedule 1, VDBA will send Form WRC to Department of

apprenticeship programs may include credit and noncredit classes.

Taxation.

The total retraining credits granted to all employers is limited to

$2,500,000 for each year. If the total qualifying credits exceeds

Step 2: Requests For Additional Information And

this amount, the credit will be prorated. Employers must apply for

Notification of Authorized Credit

their share of the available credit by filing Form WRC with the

VDBA or Department of Taxation, as applicable, to determine

Additional information: If the Departments of Business

their proportionate share of the credit. Notification of the

Assistance or Taxation need additional information they will

authorized credit amount must be received before the credit may

contact you by May 1st and you will have until May 15 to

be claimed on the tax return.

respond.

The credit is allowable against individual income tax, estate and

The Department of Taxation will notify you of your total worker

trust tax, corporation income tax, bank franchise tax and taxes

retraining credit by June 30.

imposed upon insurance companies and utility companies (under

Sections 58.1-2500 et. seq. and Section 58.1-2620 et seq., Code

of Virginia). This credit is nonrefundable, but excess credit may

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

be carried forward for the next three taxable years until fully

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

utilized.

extension of time to file along with payment of any tax due or

file your return without the credit and file an amended return

upon receipt of the credit information.

Process Overview For Claiming This Credit

Claiming this credit takes the following three-step process.

Definitions used to qualify training are after Step 3.

Step 3: Claim Worker Retraining Credit on Your Return

After notification of authorized credit, claim the credit on the

Step 1: Determine eligibility of courses or apprenticeship

applicable Virginia tax return. See the tax return instructions for

programs for credit.

computation and attachment details.

Non-credit courses: Employers seeking this credit will have

EFINITIONS

retrained employees through noncredit courses. To determine if

the training will qualify for this credit, complete Parts I, II, and

“Eligible Worker Retraining” means the retraining of a

Schedule 1 of Form WRC and send it to Virginia Department of

qualified employee that promotes economic development.

Business Assistance, P. O. Box 446, Richmond, VA 23218-

Retraining of a qualified employee will promote economic

0446; Telephone: 804-371-8200. VDBA will determine the

development when the employment brings new income into

allowable qualifying credit based on the courses used and number

Virginia, stimulates additional employment, improves existing

of employees retrained. VDBA will forward this determination to

processes, products or services or is the basis for further

Department of Taxation for Step 2.

economic growth. The retraining can be accomplished through

(i) noncredit courses at any Virginia community college or a

Apprenticeship Programs: Employers seeking this credit will

private school or (ii) worker retraining programs undertaken

have retrained employees in a Virginia Apprenticeship Council

through an apprenticeship agreement approved by the Virginia

approved program under the Voluntary Apprenticeship Act. For

Apprenticeship Council.

program information, call Department of Labor and Industry at

804-786-8009.

Instructions For Form Wrc - Worker Retraining Tax Credit Application

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