RETRAINING TAX CREDIT | Turning Training into Tax Savings for a Pool Service Business
In the pool service industry, change is constant. New regulations, evolving equipment standards, and emerging technologies are part of staying competitive and compliant.
In the pool service industry, change is constant. New regulations, evolving equipment standards, and emerging technologies are part of staying competitive and compliant.
For one mid-size pool servicing company with about 30 employees, a major shift came with new government requirements around multi-speed pumps and a broader industry move toward IoT-enabled equipment. To keep up, the company had to retrain much of its workforce on new systems, installation practices, and maintenance procedures.
Like most operators, they saw this as a cost of doing business. Training was necessary to stay compliant and meet customer expectations.
What they did not realize was that this required training created a tax savings opportunity.
By evaluating their efforts over a three-year period, we identified qualifying activities under the Georgia Retraining Tax Credit, a program that can cover up to 50% of training costs and provide up to $1,250 per employee per year.
The impact:
- $87,973 in Georgia income tax savings over three years
- Savings tied directly to workforce training already completed
- Ongoing five-figure annual tax savings moving forward
How Trove Uncovered Tax Savings
The process was straightforward and required only a few hours from the client’s team. Trove handled everything from identifying eligible training to preparing documentation, coordinating with the state, and working with the company’s tax preparer to claim the savings.
For many trades and home service businesses, ongoing training is essential to delivering a strong customer experience and keeping teams up to date. Whether it is new equipment, emerging technologies, or software platforms, employees are constantly learning and adapting. Yet very few companies take the extra step to capture the savings tied to that training.
If your business is investing in your workforce to stay current, there is a strong chance those efforts qualify.
We can help you turn required training into real financial return through programs like the Georgia Retraining Tax Credit.
Schedule a time to connect and take a closer look HERE.
FAQs
The Georgia Retraining Tax Credit rewards Georgia businesses that invest in training employees on new or enhanced software, equipment, technologies, or business processes. Eligible companies can receive a credit of up to 50% of qualifying training costs, capped at $1,250 per eligible W-2 Georgia-based employee per year.
Common qualifying examples include training employees on new software systems, equipment, artificial intelligence, and new technologies. Qualifying trainings vary widely, and include ERP or CRM upgrades, learning new manufacturing equipment, AI automation tools, new medical equipment, Lean / Six Sigma, ISO 9001, and more. Training may include vendor-led training, online/self-paced training, on-the-job training, or employee instruction led by knowledgeable team members.
Eligible employees generally must be Georgia-based W-2 employees, work at least 25 hours per week, have been employed for at least 16 weeks at the time of training, and must be independent contributors or first-level managers.
Qualifying costs may include employee wages for time spent in eligible training, wages for employees leading the training, fees paid to third parties to develop or deliver the training, and the cost of developing training materials.
No. The program can be valuable for companies of any size, as long as they have qualifying Georgia employees and eligible retraining activity. We have completed Georgia Retraining Tax Credit projects for businesses with 5 employees, thousands of employees, and every size in between.
Yes. One of the best things about the Georgia Retraining Tax Credit is that all credits get approved by the Technical College System of Georgia before any credits appear on the Georgia tax return. Approval can happen after training has been completed.
The overall process generally takes 6 to 12 weeks, depending on the availability of information and response times from the company and government agencies. Trove's process is designed to minimize the client's time commitment, often requiring only a few hours from the HR or leadership team.
After approval and completion documentation, the credit is typically claimed on a Georgia income tax return using the applicable Georgia retraining credit forms. Trove works with the company and tax preparer to provide the information needed to claim the credit.
Yes. Businesses that continue investing in eligible employee training may be able to claim the credit annually, creating a recurring tax savings opportunity.
Georgia Retraining Tax Credits can offset up to 50% of the tax liability at the entity level. For businesses that are pass-through entities that don't elect to pay Georgia income tax at the entity level, the credits pass through to owners via their K-1s.
Businesses can amend Georgia income tax returns to retroactively claim credits within one year of the filing date of the original return, as long as it was timely filed (including extensions).
Yes. Any Georgia Retraining Tax Credits can be carried forward for 5 years. Any credits earned in 2024 or earlier can carry forward for 10 years.