State Tax Credits for ISO 9000 Training

Is your organization using state funding for your ISO 9000 training? Some states, like Georgia, provide a retraining tax credit to foster the profitability and competitiveness of its industry by encouraging workforce development.

In Georgia, up to $500 per retraining program per employee is eligible for the state income tax credit. Eligible costs include instructor fees, materials, equipment, and employee wages. Check with your state to see if a similar credit is available to offset your ISO 9000 training costs.

A quick Internet search using Google identified tax credits in Ohio, Mississippi, South Carolina, North Carolina, Connecticut, Nebraska, New York, Rhode Island, Missouri, and Virginia. Search for credits offered by your state.

The state of Georgia offers a state income tax credit based on the Georgia Business Expansion Support Act. Eligible retraining programs are those that provide job skills for employees otherwise unable to function effectively on the job due to skill deficiencies, or who would otherwise be displaced, because such skill deficiencies would inhibit their utilization of new technology.

The Georgia Department of Technical and Adult Education defines new technology as including implementation of new equipment and/or new operating systems, such as, workplace reengineering, total quality management, ISO 9000 standards, and employee involvement programs. Executive training, management development training, career development, and/or personal enrichment training are not included.

Eligible companies in Georgia may be granted tax credits equal to one half of the direct cost of retraining up to $500 per full-time employee per approved training program for each employee who has successfully completed an approved retraining program.

Any tax credit claimed under the Georgia Code for any taxable year beginning on or after January 1, 1998, but not used for any such taxable year, may be carried forward for ten years from the close of the taxable year in which the tax credit was granted. The tax credit granted to any employer pursuant to this Code shall not exceed 50 percent of the amount of the taxpayer’s income tax liability for the taxable year as computed without regard to the Code.

Approved Retraining means retraining programs which are approved in advance of implementation by the Georgia Department of Technical and Adult Education. Local technical colleges in Georgia provide information regarding approval of retraining programs. Retraining programs may be either employer-provided or employer-sponsored.

Cost of retraining includes direct instructional costs, such as, instructor salaries, materials, supplies, textbooks, manuals, video tapes or other instructional media and training equipment purchased or rented for and utilized solely for the employee retraining. Costs for renting or otherwise securing space for retraining are excluded.

Employee wages are an allowable retraining cost. This cost is prorated to reflect wages paid only for time devoted exclusively to retraining during paid working hours, as long as, the training does not occur while the employee is producing a product or providing a service.

A eligible employee is any worker who resides in the State of Georgia, who is employed for a minimum of 25 hours per week, and who has been continuously employed by the employer for at least 16 consecutive weeks. For purposes of the retraining tax credit, employee means workers involved in direct labor and their immediate supervisors.

For more details on the Georgia Retraining Tax Credit, see <>.