Virginia · Workforce · VA-WT-001
Worker Training Tax Credit
Publication revised September 24, 2026. Sourcebook page 267.
Credit amount / calculation
35% of eligible training expenses, capped at $500 per qualified employee annually or $1,000 per qualifying non-highly compensated worker.
Business fit and eligible activity
Forest-products employers can claim credits for qualifying worker training, including manufacturing training. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
Training must meet the approved course, credential or registered-apprenticeship requirements. Ordinary vendor instruction on newly purchased machinery is not automatically eligible.
Illustrative business benefit
Ten ordinary qualified employees each receive $2,000 of eligible instruction. Although 35% is $700 each, the $500 per-person cap limits the total to $5,000 before allocation or other limits.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
- Virginia Tax - Business Development Credits (virginia.gov)
- Virginia Tax - Tax Credits (virginia.gov)
- Virginia Tax - Business Development Credits (wa.gov)
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