WTC: Worker Training Tax Credit Application (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form WTC is an application for approval of the Worker Training Tax Credit. It reports credit requests for credit or noncredit courses, approved apprenticeship programs, and manufacturing-related orientation, instruction, and training programs, along with employee or prog
Who files this form
Businesses seeking the Virginia Worker Training Tax Credit for tax year 2024 must file Form WTC to apply for their share of the available credit.
The application covers:
- Eligible credit or noncredit courses that result in a workforce credential, taken at an institution on the Eligible Training Provider List or a Virginia public institution of higher education.
- Training under an apprenticeship agreement approved by the Virginia Department of Workforce Development and Advancement-Virginia Works.
- Approved manufacturing-related orientation, instruction, and training conducted in Virginia by businesses primarily engaged in manufacturing. These programs must serve only students in grades 6-12, be coordinated with the local school division, and meet the location requirements in the text.
You must receive notification of your authorized credit before claiming it on your tax return.
When it's due
For the tax year 2024 application, the text gives the following dates without specifying their calendar year:
- April 1: File Form WTC, applicable schedules, and required enclosures. Forms received after this date may not be processed, and the credit may not be approved.
- May 15: The Department of Taxation will contact you by this date if it needs more information.
- May 31: Respond to requests for more information by this date. If you have not received acknowledgment of your application, call (804) 786-2992.
- June 30: The department will issue the credit by this date.
- July 15: If you have not received your credit certification, call (804) 786-2992.
If the return on which you will claim the credit is due on or before May 1, you may need to make an automatic extension payment for tax due or file an amended return after receiving credit confirmation.
What you'll need
Prepare Form WTC and the schedules and supporting documents that apply to your training:
- Schedule A, courses: Use a separate schedule for each course. Enclose the documentation used to complete it, including school or college enrollment forms showing the courses taken and payment by the employer.
- Schedule B, apprenticeships: Use a separate schedule for each school. Enclose a signed Apprenticeship Action Form, an Apprenticeship Related Instruction Enrollment Form, and proof of employer payment. Organize each school in a separate folder with Form WTC, Schedule B, invoices, the Labor Department Apprenticeship Form, and copies of E-checks or canceled checks.
- Schedule C, manufacturing programs: Use a separate schedule for each program. Enclose the local school division's approval letter and documentation of direct costs incurred during the tax year. Examples include salary-proration calculations, materials and equipment receipts, and lease agreements.
You will also need the business and contact information requested on Form WTC and the employee, course, program, and cost details requested on the applicable schedules.
How to file
- Complete Form WTC, Sections I and III, including the signature.
- Complete the applicable schedules before filling out Section II: Schedule A for Part A, Schedule B for Part B, and Schedule C for Part C.
- Transfer the requested totals to Section II and attach the required supporting documents.
- Mail Form WTC, schedules, and enclosures to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
The text provides mailing instructions for Form WTC, but no e-filing method.
After receiving notification of the authorized credit, claim it on the applicable Virginia tax return. Follow that return's instructions for calculations and enclosures.
Pass-through entities: When allocating the credit to participants, file Form TCA and give each participant Schedule VK-1. Send Form TCA to the same address, marked ATTN: Tax Credit Unit, or fax it to (804) 774-3902. Do not do both.
Common mistakes
- Claiming the credit before approval: Wait for notification of your authorized credit amount.
- Including Commonwealth-paid training: The form states that this training does not qualify.
- Filing late: Applications received after April 1 may not be processed or approved.
- Completing Section II first: Complete the corresponding schedules before entering the credit information.
- Searching the wrong training-provider list: Limit your search to Workforce Innovation & Opportunity Act Eligible Training Providers.
- Entering an email address without wanting email communications: Providing an email address means you consent to emailed communications about the application. Leave it blank if you do not want them.
- Skipping Form TCA when allocating a pass-through credit: This may cause the participant's credit to be disallowed or delay return processing. Do not both mail and fax Form TCA.
Questions people ask
How much is the worker training credit?
For eligible courses and apprenticeships, the credit is 35% of expenses incurred during the tax year, capped annually at $500 per qualified employee or $1,000 per non-highly compensated worker. For eligible manufacturing programs, it is 35% of direct costs, capped at $2,000. The total available to all employers and businesses is $1 million per fiscal year, so qualifying credits may be prorated.
Who counts as a qualified employee?
A qualified employee holds a full-time position requiring at least 1,680 hours in the business's entire normal operating year, with standard fringe benefits paid by the business. Seasonal or temporary employees, owners, and relatives do not qualify.
Who counts as a non-highly compensated worker?
This is a worker whose income is below Virginia's median wage, as reported by the Virginia Employment Commission, in the tax year before applying. Owners and relatives are excluded.
Can unused credit be refunded or carried to another year?
The credit is nonrefundable. Excess credit may be carried forward for the next three taxable years, but it cannot be carried back.
Where can I get help?
For Form WTC help, call the Department of Taxation at (804) 786-2992 or visit www.tax.virginia.gov. For Schedule C assistance, call the Virginia Department of Education at (804) 750-8163 or email cte@doe.virginia.gov.