Form Wrc - Virginia Worker Retraining Tax Credit Application (Page 4 of 5) in pdf

Instructions For Form WRC

Worker Retraining Tax Credit Application

GENERAl INFoRmATIoN

Step 2: Requests for Additional Information and

Notification of Authorized Credit

The Worker Retraining Tax Credit may be claimed by

employers who provide qualifying retraining for their

Additional information: If the Departments of Business

employees through noncredit classes approved by the

Assistance or Taxation need additional information they

Virginia Department of Business Assistance (VDBA) or

will contact you by may 1 and you will have until may 15

through an apprenticeship agreement approved by the

to respond. If you have not received acknowledgment of

Virginia Apprenticeship Council. For qualified employees

your application from the Department of Taxation by May

who attend Virginia community colleges the employer

31 please call 804-786-2992.

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

The Department of Taxation will notify you of your total

who attend private schools, the employer may claim the

worker retraining credit by June 30.

actual costs up to $100 per qualified employee. Qualifying

Extension of time for filing: If the tax return upon

apprenticeship programs may include credit and noncredit

which this credit will be claimed is due on or before

classes.

May 1, you may need to file an automatic extension

The total retraining credits granted to all employers is limited

payment for any tax due or file an amended return

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

upon receipt of the credit information.

exceed this amount, the credit will be prorated. Employers

must apply for their share of the available credit by filing

Step 3: Claim Worker Retraining Credit on Your Return

Form WRC with the VDBA or Department of Taxation, as

After notification of authorized credit, claim the credit on the

applicable, to determine their proportionate share of the

applicable Virginia tax return. See the tax return instructions

credit. Notification of the authorized credit amount must be

for computation and attachment details.

received before the credit may be claimed on the tax return.

DEFINITIoNS

The credit is allowable against individual income tax, estate

and trust tax, corporation income tax, bank franchise tax

“Eligible Worker Retraining” means the retraining of a

and taxes imposed upon insurance companies and utility

qualified employee that promotes economic development.

companies (under Va. Code §§ 58.1-2501 et seq. and 58.1-

Retraining of a qualified employee will promote economic

2626 et seq.). This credit is nonrefundable, but excess credit

development when the employment brings new income into

may be carried forward for the next three taxable years. No

Virginia, stimulates additional employment, improves existing

credit can be carried back to a preceding taxable year.

processes, products or services, or is the basis for further

economic growth. The retraining can be accomplished

PRoCESS oVERVIEW FoR ClAImING ThIS CREDIT

through (i) noncredit courses at any Virginia community

Claiming this credit takes the following three-step process.

college or a private school or (ii) worker retraining programs

Definitions used to qualify training are after Step 3.

undertaken through an apprenticeship agreement approved

by the Virginia Apprenticeship Council.

Step 1: Determine Eligibility of Courses or Apprenticeship

Programs for Credit

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

Noncredit Courses: Employers seeking this credit will

• specific job-related skills/studies;

have retrained employees through noncredit courses. To

• computer training due to process or equipment change of

determine if the training will qualify for this credit, complete

entry-level computer skills (ongoing computer software

Parts I, II, and Schedule 1 of Form WRC and send it to

upgrades are not included);

Virginia Department of Business Assistance, P. o. Box

• continuous improvements such as team building and

446, Richmond, VA 23218-0446. For questions, call the

quality training;

VDBA at 804-371-8200. VDBA will determine if the course

• management and supervisory training;

qualifies as eligible retraining. VDBA will forward this

determination to Department of Taxation for Step 2.

• safety and environmental training programs; and

Apprenticeship Programs: Employers seeking this credit

• credit or noncredit approved apprenticeship courses.

will have retrained employees in a Virginia Apprenticeship

“Qualified Employee” means an employee who works in a

Council approved program under the Voluntary Apprenticeship

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

Act. For program information, call Department of Labor and

normal year of the employer’s operation and standard fringe

Industry at 804-786-8009.

benefits are offered to the employee. Employees eligible

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

to take credit or noncredit courses undertaken through a

Exception below), with the Department of Taxation, Tax

registered apprenticeship agreement must be employed in

Credit Unit, P. o. Box 715, Richmond, VA 23218-0715, to

a full-time position requiring a minimum of 1,924 hours in the

determine program applicability and authorized credit.

normal year of the employer’s operation unless otherwise

approved by the Virginia Apprenticeship Council. A qualified

EXCEPTIoN: If applying for retraining credits for

employee shall not be a spouse, child, grandchild, parent

noncredit courses and an apprenticeship program,

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

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

an individual that owns, directly or indirectly, five percent or

processing Schedule 1, VDBA will send Form WRC to

more of the corporation’s stock. Employees in seasonal or

Department of Taxation.

temporary positions are not qualified for this program.

Page 4

Form Wrc - Virginia Worker Retraining Tax Credit Application Page 4

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