{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.6_1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.6_1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.6_1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.6_1.html"}],"law_id":60296,"edition_id":1,"section_id":60296,"structure_id":13153,"section_number":"58.1-439.6:1","catch_line":"Worker training tax credit","history":"2019, c. 189; 2022, c. 431.","full_text":"A\n\nAs used in this section, unless the context requires a different meaning:\n\t\t\t“Eligible worker training” means the training of a qualified employee or non-highly compensated worker in the form of (i) credit or noncredit courses at any institution recognized on the Eligible Training Provider List or at any Virginia public institution of higher education, as such term is defined in § 23.1-100, or as described in §§ 23.1-3111, 23.1-3115, 23.1-3120, and 23.1-3125, that results in the qualified employee or non-highly compensated worker receiving a workforce credential or (ii) instruction or training that is part of an apprenticeship agreement approved by the Commissioner of Labor and Industry.\n\t\t\t“Industry-recognized” means demonstrating competency or proficiency in the technical and occupational skills identified as necessary for performing functions of an occupation based on standards developed or endorsed by employers or industry organizations.\n\t\t\t“Manufacturing” means processing, manufacturing, refining, mining, or converting products for sale or resale.\n\t\t\t“Non-highly compensated worker” means a worker whose income is less than Virginia’s median wage, as reported by the Virginia Employment Commission, in the taxable year prior to applying for the credit. “Non-highly compensated worker” does not include an owner or relative.\n\t\t\t“Owner” means an individual who owns, directly or indirectly, more than a five percent interest in the business claiming the credit.\n\t\t\t“Qualified employee” means an employee of a business eligible for a credit under this section in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the business’ operations if the standard fringe benefits are paid by the business for the employee. Employees in seasonal or temporary positions shall not qualify as qualified employees. “Qualified employee” does not include an owner or relative.\n\t\t\t“Relative” means a spouse, child, grandchild, parent, or sibling of an owner.\n\t\t\t“Workforce credential” means an industry-recognized (i) certification, (ii) certificate, or (iii) degree.B\n\n1. For taxable years beginning on and after January 1, 2019, but prior to July 1, 2025, a business shall be allowed a credit against the taxes imposed by Articles 2 (\u00a7 58.1-320 et seq.), 6 (\u00a7 58.1-360 et seq.), and 10 (\u00a7 58.1-400 et seq.) of Chapter 3; Chapter 12 (\u00a7 58.1-1200 et seq.); Article 1 (\u00a7 58.1-2500 et seq.) of Chapter 25; or Article 2 (\u00a7 58.1-2620 et seq.) of Chapter 26 in an amount equal to 35 percent of expenses incurred by the business during the taxable year for eligible worker training. If the recipient of the training is a qualified employee, the credit shall not exceed $500 per qualified employee annually. If the recipient of the training is a non-highly compensated worker, the credit shall not exceed $1,000 per non-highly compensated worker annually.2\n\nFor taxable years beginning on and after January 1, 2019, but prior to January 1, 2025, a business primarily engaged in manufacturing shall be allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320 et seq.) and 10 (§ 58.1-400 et seq.) in an amount equal to 35 percent of its direct costs incurred during the taxable year in conducting orientation, instruction, and training in the Commonwealth relating to the manufacturing activities undertaken by the business. In no event shall the credit allowed to a business under this subdivision exceed $2,000 for any taxable year. The Department shall allow credit only for programs that (i) provide orientation, instruction, and training solely to students in grades six through 12; (ii) are coordinated with the local school division; and (iii) are conducted either at a plant or facility owned, leased, rented, or otherwise used by the business or at a public middle or high school in the Commonwealth. The taxpayer shall include in its direct costs only the following expenditures: (a) salaries or wages paid to instructors and trainers, prorated for the period of instruction or training; (b) costs for orientation, instruction, and training materials; (c) amounts paid for machinery and equipment used primarily for such instruction and training; and (d) the cost of leased or rented space used primarily for conducting the program.3\n\nThe total amount of tax credits granted under this section for each fiscal year shall not exceed $1 million.C\n\nFor purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.D\n\n1. A business shall be allowed a credit pursuant to subdivision B 1 only for those programs and providers that have been approved for inclusion in the Commonwealth’s Eligible Training Provider List. The Workforce Innovation Opportunity Act Title 1 Administrator shall provide the Tax Commissioner with the approved list annually.2\n\nA business shall be allowed the credit pursuant to subdivision B 2 only for an orientation, instruction, and training program that has been approved by the local school division and certified as eligible by the Department of Education. A business seeking a tax credit under subdivision B 2 shall include in its application reviewed by the Department of Education an approval from the local school division. The Department of Education shall review requests for certification submitted by businesses and shall advise the Tax Commissioner whether an orientation, instruction, and training program qualifies as relating to the manufacturing activities undertaken by the business and meets other applicable requirements.3\n\nThe Tax Commissioner shall develop guidelines (i) establishing procedures for claiming the credit provided by this section and (ii) providing for the allocation of credits among businesses requesting credits in the event that the amount of credits for which requests are made exceeds the available amount of credits in any year. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).E\n\nAny credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If a business that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such business shall be considered to have first utilized any credit allowed that does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.F\n\nNo business shall be eligible to claim a credit under this section for eligible worker training or manufacturing orientation, instruction, and training undertaken by any program operated, administered, or paid for by the Commonwealth.G\n\nThe Tax Commissioner shall report annually to the Chairmen of the House Committee on Finance and the Senate Committee on Finance and Appropriations on the status and implementation of the credit established by this section.","order_by":null,"text":{"0":{"id":220516,"text":"As used in this section, unless the context requires a different meaning:\n\t\t\t“Eligible worker training” means the training of a qualified employee or non-highly compensated worker in the form of (i) credit or noncredit courses at any institution recognized on the Eligible Training Provider List or at any Virginia public institution of higher education, as such term is defined in § 23.1-100, or as described in §§ 23.1-3111, 23.1-3115, 23.1-3120, and 23.1-3125, that results in the qualified employee or non-highly compensated worker receiving a workforce credential or (ii) instruction or training that is part of an apprenticeship agreement approved by the Commissioner of Labor and Industry.\n\t\t\t“Industry-recognized” means demonstrating competency or proficiency in the technical and occupational skills identified as necessary for performing functions of an occupation based on standards developed or endorsed by employers or industry organizations.\n\t\t\t“Manufacturing” means processing, manufacturing, refining, mining, or converting products for sale or resale.\n\t\t\t“Non-highly compensated worker” means a worker whose income is less than Virginia’s median wage, as reported by the Virginia Employment Commission, in the taxable year prior to applying for the credit. “Non-highly compensated worker” does not include an owner or relative.\n\t\t\t“Owner” means an individual who owns, directly or indirectly, more than a five percent interest in the business claiming the credit.\n\t\t\t“Qualified employee” means an employee of a business eligible for a credit under this section in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the business’ operations if the standard fringe benefits are paid by the business for the employee. Employees in seasonal or temporary positions shall not qualify as qualified employees. “Qualified employee” does not include an owner or relative.\n\t\t\t“Relative” means a spouse, child, grandchild, parent, or sibling of an owner.\n\t\t\t“Workforce credential” means an industry-recognized (i) certification, (ii) certificate, or (iii) degree.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":220517,"text":"1. For taxable years beginning on and after January 1, 2019, but prior to July 1, 2025, a business shall be allowed a credit against the taxes imposed by Articles 2 (\u00a7 58.1-320 et seq.), 6 (\u00a7 58.1-360 et seq.), and 10 (\u00a7 58.1-400 et seq.) of Chapter 3; Chapter 12 (\u00a7 58.1-1200 et seq.); Article 1 (\u00a7 58.1-2500 et seq.) of Chapter 25; or Article 2 (\u00a7 58.1-2620 et seq.) of Chapter 26 in an amount equal to 35 percent of expenses incurred by the business during the taxable year for eligible worker training. If the recipient of the training is a qualified employee, the credit shall not exceed $500 per qualified employee annually. If the recipient of the training is a non-highly compensated worker, the credit shall not exceed $1,000 per non-highly compensated worker annually.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":220518,"text":"For taxable years beginning on and after January 1, 2019, but prior to January 1, 2025, a business primarily engaged in manufacturing shall be allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320 et seq.) and 10 (§ 58.1-400 et seq.) in an amount equal to 35 percent of its direct costs incurred during the taxable year in conducting orientation, instruction, and training in the Commonwealth relating to the manufacturing activities undertaken by the business. In no event shall the credit allowed to a business under this subdivision exceed $2,000 for any taxable year. The Department shall allow credit only for programs that (i) provide orientation, instruction, and training solely to students in grades six through 12; (ii) are coordinated with the local school division; and (iii) are conducted either at a plant or facility owned, leased, rented, or otherwise used by the business or at a public middle or high school in the Commonwealth. The taxpayer shall include in its direct costs only the following expenditures: (a) salaries or wages paid to instructors and trainers, prorated for the period of instruction or training; (b) costs for orientation, instruction, and training materials; (c) amounts paid for machinery and equipment used primarily for such instruction and training; and (d) the cost of leased or rented space used primarily for conducting the program.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":220519,"text":"The total amount of tax credits granted under this section for each fiscal year shall not exceed $1 million.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"4":{"id":220520,"text":"For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"5":{"id":220521,"text":"1. A business shall be allowed a credit pursuant to subdivision B 1 only for those programs and providers that have been approved for inclusion in the Commonwealth’s Eligible Training Provider List. The Workforce Innovation Opportunity Act Title 1 Administrator shall provide the Tax Commissioner with the approved list annually.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D2"},"6":{"id":220522,"text":"A business shall be allowed the credit pursuant to subdivision B 2 only for an orientation, instruction, and training program that has been approved by the local school division and certified as eligible by the Department of Education. A business seeking a tax credit under subdivision B 2 shall include in its application reviewed by the Department of Education an approval from the local school division. The Department of Education shall review requests for certification submitted by businesses and shall advise the Tax Commissioner whether an orientation, instruction, and training program qualifies as relating to the manufacturing activities undertaken by the business and meets other applicable requirements.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"D3"},"7":{"id":220523,"text":"The Tax Commissioner shall develop guidelines (i) establishing procedures for claiming the credit provided by this section and (ii) providing for the allocation of credits among businesses requesting credits in the event that the amount of credits for which requests are made exceeds the available amount of credits in any year. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"8":{"id":220524,"text":"Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If a business that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such business shall be considered to have first utilized any credit allowed that does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3","next_prefix":"F"},"9":{"id":220525,"text":"No business shall be eligible to claim a credit under this section for eligible worker training or manufacturing orientation, instruction, and training undertaken by any program operated, administered, or paid for by the Commonwealth.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"10":{"id":220526,"text":"The Tax Commissioner shall report annually to the Chairmen of the House Committee on Finance and the Senate Committee on Finance and Appropriations on the status and implementation of the credit established by this section.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for Corporations","identifier":"13","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253497,"object_type":"structure","relational_id":13153,"identifier":"13","token":"58.1\/I\/3\/13","url":"\/58.1\/I\/3\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income 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credit","url":"\/58.1-439.6_1\/","token":"58.1\/I\/3\/13\/58.1-439.6_1","metadata":false},{"id":55856,"structure_id":13153,"section_number":"58.1-439.7","catch_line":"Tax credit for purchase of machinery and equipment used for advanced recycling and processing recyclable materials","url":"\/58.1-439.7\/","token":"58.1\/I\/3\/13\/58.1-439.7","metadata":false},{"id":82497,"structure_id":13153,"section_number":"58.1-439.8","catch_line":"Repealed","url":"\/58.1-439.8\/","token":"58.1\/I\/3\/13\/58.1-439.8","metadata":false},{"id":66196,"structure_id":13153,"section_number":"58.1-439.9","catch_line":"Tax credit for certain employers hiring recipients of Temporary Assistance for Needy Families","url":"\/58.1-439.9\/","token":"58.1\/I\/3\/13\/58.1-439.9","metadata":false}],"previous_section":{"id":81908,"structure_id":13153,"section_number":"58.1-439.6","catch_line":"Worker retraining tax credit","url":"\/58.1-439.6\/","token":"58.1\/I\/3\/13\/58.1-439.6","metadata":false},"next_section":{"id":55856,"structure_id":13153,"section_number":"58.1-439.7","catch_line":"Tax credit for purchase of machinery and equipment used for advanced recycling and processing recyclable materials","url":"\/58.1-439.7\/","token":"58.1\/I\/3\/13\/58.1-439.7","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.6:1\/","history_text":"

This law was first created in 2019. The record of its establishment is cataloged in chapter 189<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2022, chapter 431<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":59984,"section_number":"23.1-100","catch_line":"Definitions","order_by":null,"url":"\/23.1-100\/"},{"id":60950,"section_number":"23.1-3111","catch_line":"New College Institute established; duties","order_by":null,"url":"\/23.1-3111\/"},{"id":67455,"section_number":"23.1-3115","catch_line":"Roanoke Higher Education Authority established","order_by":null,"url":"\/23.1-3115\/"},{"id":85568,"section_number":"23.1-3120","catch_line":"Southern Virginia Higher Education Center established; duties","order_by":null,"url":"\/23.1-3120\/"},{"id":70021,"section_number":"23.1-3125","catch_line":"Southwest Virginia Higher Education Center established; duties","order_by":null,"url":"\/23.1-3125\/"},{"id":54678,"section_number":"58.1-1200","catch_line":"Title","order_by":null,"url":"\/58.1-1200\/"},{"id":56221,"section_number":"58.1-2500","catch_line":"Definitions","order_by":null,"url":"\/58.1-2500\/"},{"id":54193,"section_number":"58.1-2620","catch_line":"Basis of tax","order_by":null,"url":"\/58.1-2620\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":82371,"section_number":"58.1-360","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-360\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":253627,"object_type":"law","relational_id":60296,"identifier":"58.1-439.6:1","token":"58.1\/I\/3\/13\/58.1-439.6_1","url":"\/58.1-439.6_1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.6_1\/","token":"58.1\/I\/3\/13\/58.1-439.6_1","dublin_core":{"Title":"Worker training tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.6:1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, unless the context requires a different meaning:\n\t\t\t“Eligible worker training<\/span>” means the training of a qualified employee<\/span> or non-highly compensated worker<\/span> in the form of (i) credit or noncredit courses at any institution recognized on the Eligible Training Provider List or at any Virginia public institution of higher education, as such term is defined in § 23.1-100<\/a>, or as described in §§ 23.1-3111<\/a>, 23.1-3115<\/a>, 23.1-3120<\/a>, and 23.1-3125<\/a>, that results in the qualified employee<\/span> or non-highly compensated worker<\/span> receiving a workforce credential<\/span> or (ii) instruction or training that is part of an apprenticeship agreement approved by the Commissioner of Labor and Industry.\n\t\t\t“Industry-recognized<\/span>” means demonstrating competency or proficiency in the technical and occupational skills identified as necessary for performing functions of an occupation based on standards developed or endorsed by employers or industry organizations.\n\t\t\t“Manufacturing<\/span>” means processing, manufacturing<\/span>, refining, mining, or converting products for sale or resale.\n\t\t\t“Non-highly compensated worker<\/span>” means a worker whose income is less than Virginia’s median wage, as reported by the Virginia Employment Commission, in the taxable year prior to applying for the credit. “Non-highly compensated worker<\/span>” does not include an owner<\/span> or relative<\/span>.\n\t\t\t“Owner<\/span>” means an individual<\/span> who owns, directly or indirectly, more than a five percent interest in the business claiming the credit.\n\t\t\t“Qualified employee<\/span>” means an employee of a business eligible for a credit under this section in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the business’ operations if the standard fringe benefits are paid by the business for the employee. Employees in seasonal or temporary positions shall not qualify as qualified employees<\/span>. “Qualified employee<\/span>” does not include an owner<\/span> or relative<\/span>.\n\t\t\t“Relative<\/span>” means a spouse, child, grandchild, parent, or sibling of an owner<\/span>.\n\t\t\t“Workforce credential<\/span>” means an industry-recognized<\/span> (i) certification, (ii) certificate, or (iii) degree. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For taxable years beginning on and after January 1, 2019, but prior to July 1, 2025, a business shall be allowed a credit against the taxes imposed by Articles 2 (\u00a7 58.1-320<\/a> et seq.), 6 (\u00a7 58.1-360<\/a> et seq.), and 10 (\u00a7 58.1-400<\/a> et seq.) of Chapter 3; Chapter 12 (\u00a7 58.1-1200<\/a> et seq.); Article 1 (\u00a7 58.1-2500<\/a> et seq.) of Chapter 25; or Article 2 (\u00a7 58.1-2620<\/a> et seq.) of Chapter 26 in an amount equal to 35 percent of expenses incurred by the business during the taxable year for eligible worker training<\/span>. If the recipient of the training is a qualified employee<\/span>, the credit shall not exceed $500 per qualified employee<\/span> annually. If the recipient of the training is a non-highly compensated worker<\/span>, the credit shall not exceed $1,000 per non-highly compensated worker<\/span> annually. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For taxable years beginning on and after January 1, 2019, but prior to January 1, 2025, a business primarily engaged in manufacturing<\/span> shall be allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320<\/a> et seq.) and 10 (§ 58.1-400<\/a> et seq.) in an amount equal to 35 percent of its direct costs incurred during the taxable year in conducting orientation, instruction, and training in the Commonwealth relating to the manufacturing<\/span> activities undertaken by the business. In no event shall the credit allowed to a business under this subdivision exceed $2,000 for any taxable year. The Department<\/span> shall allow credit only for programs that (i) provide orientation, instruction, and training solely to students in grades six through 12; (ii) are coordinated with the local school division; and (iii) are conducted either at a plant or facility owned, leased, rented, or otherwise used by the business or at a public middle or high school in the Commonwealth. The taxpayer<\/span> shall include in its direct costs only the following expenditures: (a) salaries or wages paid to instructors and trainers, prorated for the period of instruction or training; (b) costs for orientation, instruction, and training materials<\/span>; (c) amounts paid for machinery and equipment used primarily for such instruction and training; and (d) the cost of leased or rented space used primarily for conducting the program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The total amount of tax credits granted under this section for each fiscal year shall not exceed $1 million. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation<\/span> (S corporation<\/span>), or limited liability company shall be allocated to the individual<\/span> partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. A business shall be allowed a credit pursuant to subdivision B 1 only for those programs and providers that have been approved for inclusion in the Commonwealth’s Eligible Training Provider List. The Workforce Innovation Opportunity Act Title 1 Administrator shall provide the Tax Commissioner<\/span> with the approved list annually. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A business shall be allowed the credit pursuant to subdivision B 2 only for an orientation, instruction, and training program that has been approved by the local school division and certified as eligible by the Department<\/span> of Education. A business seeking a tax credit under subdivision B 2 shall include in its application reviewed by the Department<\/span> of Education an approval from the local school division. The Department<\/span> of Education shall review requests for certification submitted by businesses and shall advise the Tax Commissioner<\/span> whether an orientation, instruction, and training program qualifies as relating to the manufacturing<\/span> activities undertaken by the business and meets other applicable requirements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Tax Commissioner<\/span> shall develop guidelines (i) establishing procedures for claiming the credit provided by this section and (ii) providing for the allocation of credits among businesses requesting credits in the event that the amount of credits for which requests are made exceeds the available amount of credits in any year. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If a business that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such business shall be considered to have first utilized any credit allowed that does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> No business shall be eligible to claim a credit under this section for eligible worker training<\/span> or manufacturing<\/span> orientation, instruction, and training undertaken by any program operated, administered, or paid for by the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The Tax Commissioner<\/span> shall report annually to the Chairmen of the House Committee on Finance and the Senate Committee on Finance and Appropriations on the status and implementation of the credit established by this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWORKER TRAINING TAX CREDIT (\u00a7 58.1-439.6:1)\n\nA. As used in this section, unless the context requires a different meaning:\n\t\t\t“Eligible worker training” means the training of a qualified\nemployee or non-highly compensated worker in the form of (i) credit or noncredit\ncourses at any institution recognized on the Eligible Training Provider List or\nat any Virginia public institution of higher education, as such term is defined\nin § 23.1-100, or as described in §§ 23.1-3111, 23.1-3115,\n23.1-3120, and 23.1-3125, that results in the qualified employee or non-highly\ncompensated worker receiving a workforce credential or (ii) instruction or\ntraining that is part of an apprenticeship agreement approved by the\nCommissioner of Labor and Industry.\n\t\t\t“Industry-recognized” means demonstrating competency or\nproficiency in the technical and occupational skills identified as necessary for\nperforming functions of an occupation based on standards developed or endorsed\nby employers or industry organizations.\n\t\t\t“Manufacturing” means processing, manufacturing, refining,\nmining, or converting products for sale or resale.\n\t\t\t“Non-highly compensated worker” means a worker whose income is\nless than Virginia’s median wage, as reported by the Virginia Employment\nCommission, in the taxable year prior to applying for the credit.\n“Non-highly compensated worker” does not include an owner or\nrelative.\n\t\t\t“Owner” means an individual who owns, directly or indirectly,\nmore than a five percent interest in the business claiming the credit.\n\t\t\t“Qualified employee” means an employee of a business eligible for\na credit under this section in a full-time position requiring a minimum of 1,680\nhours in the entire normal year of the business’ operations if the\nstandard fringe benefits are paid by the business for the employee. Employees in\nseasonal or temporary positions shall not qualify as qualified employees.\n“Qualified employee” does not include an owner or relative.\n\t\t\t“Relative” means a spouse, child, grandchild, parent, or sibling\nof an owner.\n\t\t\t“Workforce credential” means an industry-recognized (i)\ncertification, (ii) certificate, or (iii) degree.\n\nB. 1. For taxable years beginning on and after January 1, 2019, but prior to\nJuly 1, 2025, a business shall be allowed a credit against the taxes imposed by\nArticles 2 (\u00a7 58.1-320 et seq.), 6 (\u00a7 58.1-360 et seq.), and 10 (\u00a7 58.1-400\net seq.) of Chapter 3; Chapter 12 (\u00a7 58.1-1200 et seq.); Article 1 (\u00a7\n58.1-2500 et seq.) of Chapter 25; or Article 2 (\u00a7 58.1-2620 et seq.) of Chapter\n26 in an amount equal to 35 percent of expenses incurred by the business during\nthe taxable year for eligible worker training. If the recipient of the training\nis a qualified employee, the credit shall not exceed $500 per qualified employee\nannually. If the recipient of the training is a non-highly compensated worker,\nthe credit shall not exceed $1,000 per non-highly compensated worker annually.\n\n 2. For taxable years beginning on and after January 1, 2019, but prior to\n January 1, 2025, a business primarily engaged in manufacturing shall be\n allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320 et\n seq.) and 10 (§ 58.1-400 et seq.) in an amount equal to 35 percent of its\n direct costs incurred during the taxable year in conducting orientation,\n instruction, and training in the Commonwealth relating to the manufacturing\n activities undertaken by the business. In no event shall the credit allowed to\n a business under this subdivision exceed $2,000 for any taxable year. The\n Department shall allow credit only for programs that (i) provide orientation,\n instruction, and training solely to students in grades six through 12; (ii)\n are coordinated with the local school division; and (iii) are conducted either\n at a plant or facility owned, leased, rented, or otherwise used by the\n business or at a public middle or high school in the Commonwealth. The\n taxpayer shall include in its direct costs only the following expenditures:\n (a) salaries or wages paid to instructors and trainers, prorated for the\n period of instruction or training; (b) costs for orientation, instruction, and\n training materials; (c) amounts paid for machinery and equipment used\n primarily for such instruction and training; and (d) the cost of leased or\n rented space used primarily for conducting the program.\n\n 3. The total amount of tax credits granted under this section for each fiscal\n year shall not exceed $1 million.\n\nC. For purposes of this section, the amount of any credit attributable to a\npartnership, electing small business corporation (S corporation), or limited\nliability company shall be allocated to the individual partners, shareholders,\nor members, respectively, in proportion to their ownership or interest in such\nbusiness entities.\n\nD. 1. A business shall be allowed a credit pursuant to subdivision B 1 only for\nthose programs and providers that have been approved for inclusion in the\nCommonwealth’s Eligible Training Provider List. The Workforce Innovation\nOpportunity Act Title 1 Administrator shall provide the Tax Commissioner with\nthe approved list annually.\n\n 2. A business shall be allowed the credit pursuant to subdivision B 2 only for\n an orientation, instruction, and training program that has been approved by\n the local school division and certified as eligible by the Department of\n Education. A business seeking a tax credit under subdivision B 2 shall include\n in its application reviewed by the Department of Education an approval from\n the local school division. The Department of Education shall review requests\n for certification submitted by businesses and shall advise the Tax\n Commissioner whether an orientation, instruction, and training program\n qualifies as relating to the manufacturing activities undertaken by the\n business and meets other applicable requirements.\n\n 3. The Tax Commissioner shall develop guidelines (i) establishing procedures\n for claiming the credit provided by this section and (ii) providing for the\n allocation of credits among businesses requesting credits in the event that\n the amount of credits for which requests are made exceeds the available amount\n of credits in any year. Such guidelines shall be exempt from the provisions of\n the Administrative Process Act (§ 2.2-4000 et seq.).\n\nE. Any credit not usable for the taxable year may be carried over for the next\nthree taxable years. The amount of credit allowed pursuant to this section shall\nnot exceed the tax imposed for such taxable year. No credit shall be carried\nback to a preceding taxable year. If a business that is subject to the tax\nlimitation imposed pursuant to this subsection is allowed another credit\npursuant to any other section of this Code, or has a credit carryover from a\npreceding taxable year, such business shall be considered to have first utilized\nany credit allowed that does not have a carryover provision, and then any credit\nwhich is carried forward from a preceding taxable year, prior to the utilization\nof any credit allowed pursuant to this section.\n\nF. No business shall be eligible to claim a credit under this section for\neligible worker training or manufacturing orientation, instruction, and training\nundertaken by any program operated, administered, or paid for by the\nCommonwealth.\n\nG. The Tax Commissioner shall report annually to the Chairmen of the House\nCommittee on Finance and the Senate Committee on Finance and Appropriations on\nthe status and implementation of the credit established by this section.\n\nHISTORY: 2019, c. 189; 2022, c. 431.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}