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 (tax.virginia.gov)
Related programs
Recyclable Materials Processing Equipment Tax Credit
20% of qualifying machinery/equipment purchase price
Potentially relevant to manufacturers producing products from recyclable material; current authorization runs through tax years beginning before 2027.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.