Georgia Retraining Tax Credit

The Georgia Retraining Tax Credit is a state income tax credit available to businesses that train Georgia-based employees on new software, technologies, or equipment. It is designed to encourage businesses to invest in workforce development and is administered by the Georgia Department of Economic Development under O.C.G.A. § 48-7-40.18.

Program at a Glance

Credit amount	Up to 50% of eligible training costs, capped at $1,250 per employee per year
Who qualifies	Georgia businesses of any size or industry that conduct eligible employee training
Applies against	Georgia state income tax
Carry forward	Up to 10 years
Statute	O.C.G.A. § 48-7-40.18

Eligibility

Any Georgia business that trains employees on new technologies, software, or equipment may qualify. The program is not limited to a specific industry — manufacturers, healthcare organizations, distribution companies, professional services firms, and others have successfully claimed this credit. The training must involve new skills tied to a specific technology, software platform, or piece of equipment introduced to the workplace.

What Training Qualifies

• Training employees on new enterprise software platforms (ERP, CRM, accounting, operations management systems)
• Training on new manufacturing equipment, industrial machinery, or specialty tools
• Training on new healthcare technology platforms, electronic medical records systems, or clinical equipment
• Training on new warehouse management, supply chain, or logistics software
• Any formal structured training program tied to the introduction of a new technology or system in the business

What Does Not Qualify

• Training that maintains existing skills rather than developing new ones tied to a specific technology change
• General management, leadership, or soft-skills training not connected to a qualifying technology
• College or university tuition reimbursement programs not tied to a qualifying training activity

Credit Calculation

The credit equals the lesser of (a) 50% of the employer’s direct costs for qualifying training or (b) $1,250 per trained employee per year. Direct costs include fees paid to trainers or training providers and certain materials costs directly associated with the training. Internal labor costs for time spent in training are generally not included in the cost base.

How to Claim

The credit is claimed on the Georgia income tax return. The business must obtain pre-approval from the Georgia Department of Economic Development before the training begins for certain training programs, or submit documentation of completed training depending on the program type. Contemporaneous records of the training content, participants, costs, and qualifying technology should be maintained.

Key Notes

• The $1,250 per-employee cap applies per tax year — a business training many employees can generate a substantial aggregate credit
• Both the cost percentage limit (50%) and the per-employee cap ($1,250) apply — whichever is lower governs
• Credits exceeding the current year’s Georgia income tax liability carry forward for up to 10 years
• The program applies to businesses of all sizes — there is no minimum or maximum employee count
• Training on AI tools, automation software, and other emerging technologies increasingly qualifies as businesses adopt these systems

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