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DBA Revamps Worker Retraining Tax Credit

VMA Advocating for New Focus on Industry Credentials-

  RICHMOND, VA – The Virginia Manufacturers Association (VMA) is pleased to offer the Virginia Department of Business Assistance (DBA) the opportunity to unveil its new guidelines for implementation of Virginia’s Worker Retraining Tax Credit at the VMA’s West Central Virginia Manufacturing Town Hall meeting today. The VMA was integral in the legislation passed during the 2013 Virginia General Assembly session for DBA to revamp the programs to which Virginia’s Worker Retraining Tax Credit applies. It recognizes industry’s focus on skills attainment and process-specific training necessary for today’s advanced technology requirements in manufacturing.  A total of $2.5 Million is available to Virginia’s employers annually for this credit and, while it is non-refundable, excess credit may be carried forward to the next three taxable years. Katherine DeRosear, VMA’s Director of Workforce Development, observed, “The worker retraining tax credit provides an incentive for Virginia’s manufacturers to up-skill its incumbent workforce. The tax credit is a step in the right direction by allowing manufacturers to choose training providers based upon performance outcomes.” The Worker Retraining Tax Credit is a part of DBA’s Virginia Jobs Investment Program (VJIP). Effective January 1, 2013, the new guidelines specifically offer employers the opportunity to apply for the tax credit for employees participating in both credit and non-credit courses at public and private institutions as well as apprenticeship programs registered with Virginia’s Department of Labor and Industry (DOLI), with an emphasis on training resulting in industry credentials or focused on STEM disciplines.  (For these purposes, STEM is defined as science, technology, engineering, or applied mathematics.) In order to be eligible, workers must be in full-time positions, and the training must be related to their current duties or enhance an employee’s job- related skills.  Approval of training must be sought in advance of applying credits toward eligible tax liabilities; applications and instructions for how to utilize this tax credit are available at https://www.tax.virginia.gov/business-development-credits. About the VMA The Virginia Manufacturers Association is the only statewide association exclusively dedicated to manufacturers and their network of service providers. Since 1922, the VMA has exclusively served as Industry’s Advocate, and our mission is to create the best business environment in the United States for world-class advanced technology businesses to manufacture and headquarter their businesses for maximum productivity and profitability. The VMA also supports a broad array of business services and programs to help ensure that manufacturing companies can be productive, profitable and competitive in Virginia. Virginia’s more than 6,000 manufacturers employ more than 220,000 individuals, contribute $34 billion to the gross state product and account for more than 80 percent of the state’s exports to the global economy. For more information about the VMA, please visit www.vamanufacturers.com. About the VJIP
The Virginia Jobs Investment Program (VJIP), a division of the Virginia Department of Business Assistance (VDBA), provides customized recruiting and training services to companies creating new jobs or experiencing technological changes.  As a business development incentive supporting economic development efforts in Virginia since 1965, VJIP reduces the human resource development costs of new and expanding companies throughout the Commonwealth.  With strong support from the Governor and General Assembly, VJIP is completely state-funded, demonstrating Virginia’s commitment to enhancing job opportunities for its citizens. View PDF Version

Post Author: Antonya Hurt

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