training & hiring tax credits€¦ · 2010 and jan 1, 2011. • 2011 tax credit of up to $1,000...
TRANSCRIPT
Training & Hiring
Tax Credits
Speaker: Peter Green
Training and Hiring Tax Credits
Why States do this?
• Attract Business
• Encourage Business Behavior
• Increase Skill Sets of the Workforce
• Political Pressure – Targeted Industries
• Competing with other States to keep
business
Differences State to State
• Tax Credits or Cash Grants
• Funding May be Limited
• Targeted Industries
• Capital Investment
• Your Value to the State
• Amount of tax credits nationwide: 2,500
Federal Hire Act
OVERVIEW
• Payroll Tax Exemption for employees hired between Feb 3, 2010 and Jan 1, 2011.
• 2011 Tax Credit of up to $1,000 per worker if employed 52 weeks.
• Maximum tax savings from exemption is $6,621.
QUALIFICATIONS
• Employee was unemployed for 60 days prior to starting work, or worked <40 hours during the 60 day period.
• There is no requirement for a net increase in the total number of employees – can be qualified replacements.
Georgia Tax Credits
• Job Tax Credit
• Quality Job Tax Credit
• Retraining Tax Credit
• Investment Tax Credit
• Film Production Tax Credit
JTC Tier Map
Georgia Job Tax Credit
QUALIFIED INDUSTRIES INCLUDE
• Manufacturing, Processing, Research & Development, Warehousing &, Distribution, Tourism, Telecommunications and Broadcasting
Note: In the lower 40 counties all industries can qualify.
VALUE TO YOU
• From $750 - $5750 per new job created each year up to five years
• 50% - 100% of Georgia income tax liability by county
• Tier 1 counties can take the Jobs Tax Credit against Withholding
Georgia Job Tax Credit
Note:
• Retroactive for all open tax years. (3yrs pre 2009 1yr
post 2009)
• Credits may be allocated to affiliated corporations
• May be used along with the Retraining Tax Credit
• Can be used instead of, but not with, the Investment tax
credit
• Unused credit can be carried forward for up to 10 years
Georgia Quality Job Tax Credit
• 50 + new jobs created
• Average Salary > 100% of County Average
• Greater Tier benefit for each job.
• Credits can be taken against withholding
Census Tracts and Opportunity Zones
www.factfinder.census.gov
Georgia Retraining Tax Credit
To foster the profitability and competitiveness
of Georgia’s existing businesses by
encouraging workforce development.
To help companies offset the costs of
retraining employees
To enhance the skills of Georgia employees
Qualified Training Includes
• New Technology
• New Equipment
• New Software and Software Upgrades
• Total Quality Management Programs – Lean
Manufacturing, Six Sigma etc.
• ISO Standards
• Self-directed work teams
Value to You
• Up to a maximum of 50% of your total Georgia
income tax liability
• Up to 50% of direct training costs
• Up to $1,250 per employee per year, at $500 per
person per program
Some Tax Specifics
• Retroactive for all open tax years – (3yr look
back pre 2009. 1yr look back post 2009)
• Unused credit can be carried forward for up to
10 years
• May be allocated to affiliated corporations
• Can be used in conjunction with other tax credits
GRTC Allowable Training Costs
• Instructor salaries
• Employee wages during the retraining
• Development of retraining program
• Materials and supplies, textbooks and manuals
• Instructional media, videotapes, presentations, etc.
• Equipment used for retraining only (not production)
• Reasonable travel costs.
Eligible Employees
• Employed by the company claiming the credit
• Georgia residents
• First-line employees or immediate supervisor
• Continuously employed with the company for a
minimum of 16 weeks full-time employees
(employed for a minimum of 25 hours per week.)
Eligible Training Resources
• Company trainers
• Training vendors
• Technical colleges
• Universities
• E Learning
Administration
• Technical School System of Georgia
• The Department of Revenue
How to Maximize
Analyze all training for all Georgia
employees to see what might qualify
Look at all training costs, not just what
appears in the training budget
New Legislation
HB 439 - 2009
• $1,250 – per person per year maximum
• 1 year look back - 2009
• M.S. Office – no longer qualifies
For More Information
• http://www.georgiaquickstart.org/econd
ev/retrain.html
• www.wraywallace.com
Next Steps…
• Visit our table and pick up a flyer on each
credit
• Have a conversation with your Tax
Department
Thank You!
Peter Green
President
WALLACE – The Training Tax Credit
Company
770-772-0252 ext 302
www.wraywallaxe.com