WTC: Worker Training Tax Credit Application (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form WTC is an application for the Worker Training Tax Credit for credit or noncredit courses and approved apprenticeship programs. It reports training information, worker counts, course costs, and the credit requested. The credit must be approved before it can be claime
Who files this form
Businesses seeking the Virginia Worker Training Tax Credit must apply using Form WTC. The credit must be approved before it is claimed on a tax return.
The credit applies to taxable years beginning on or after January 1, 2019, but before July 1, 2025. Eligible training includes:
- Credit or noncredit courses at an institution on the Eligible Training Provider List or a Virginia public institution of higher education that result in a workforce credential.
- Instruction or training under an apprenticeship agreement approved by the Virginia Department of Workforce Development and Advancement-Virginia Works.
Training must be for a qualified employee or non-highly compensated worker. A qualified employee must hold a full-time position requiring at least 1,680 hours during the business’s normal year, with standard fringe benefits paid by the business. Seasonal and temporary positions do not qualify. A non-highly compensated worker must have income below Virginia’s median wage for the prior taxable year. Neither category includes an owner or an owner’s spouse, child, grandchild, parent, or sibling.
When it's due
For the tax year 2025 application, the text gives these dates without specifying their calendar year:
- April 1: File Form WTC, schedules, and required enclosures. Forms received after this date may not be processed, and the credit may not be approved.
- May 15: The Department will contact you by this date if it needs additional information.
- May 31: Respond to requests for additional information. If you have not received acknowledgment of your application by this date, 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 by this date, 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, the applicable schedules, and supporting enclosures.
For credit or noncredit courses:
- Complete a separate Schedule A for each course.
- Include copies of the documents used to complete Schedule A, including school or college enrollment forms showing the courses taken and payment by the employer.
- Have employee names, Social Security numbers, completion dates, payment dates, course costs, and provider and program information available.
For apprenticeship programs:
- Complete Schedule B, using a separate schedule for each school.
- Include a signed Apprenticeship Action Form, an Apprenticeship Related Instruction Enrollment Form, and proof of payment by the employer.
- 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.
You will also need the business’s identifying and contact information and a signature for Section III.
How to file
- Complete Sections I and III of Form WTC.
- Complete Schedule A for courses or Schedule B for approved apprenticeship programs before filling in the corresponding part of Section II.
- Transfer the totals to Section II, Part A or Part B, and attach the required enclosures.
- Mail the application to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
After receiving notice of the authorized credit, claim it on the applicable Virginia income tax return. See that return’s instructions for calculation and enclosure details.
Pass-through entities: When allocating the credit to participants, file Form TCA within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns. Send Form TCA to the address above, marked ATTN: Tax Credit Unit, or fax it to (804) 774-3902. Do not do both. Give each participant receiving the credit a Schedule VK-1.
Common mistakes
- Claiming the credit before approval. Wait until you receive notification of the authorized credit amount.
- Including training paid for by the Commonwealth. The form says this training does not qualify.
- Filing late. Applications received after April 1 may not be processed or approved.
- Combining courses or schools incorrectly. Use a separate Schedule A for each course and a separate Schedule B for each school.
- Exceeding the annual credit limits. The credit cannot exceed $500 per qualified employee or $1,000 per non-highly compensated worker annually.
- Providing an email address unintentionally. Entering an email address means you consent to emailed communications about the application. Leave it blank if you do not want those communications.
- Missing Form TCA when allocating a pass-through credit. Failure to file it may cause the credit claim to be disallowed or delay a participant’s return. Do not both mail and fax Form TCA.
Questions people ask
How much is the credit?
The credit is 35% of eligible worker training expenses incurred by the business during the taxable year, limited annually to $500 per qualified employee or $1,000 per non-highly compensated worker. Total credits are limited to $1 million each fiscal year. If qualifying credits exceed that amount, they will be prorated.
Can I receive a refund or carry unused credit 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 to an earlier year.
Where can I check whether a training provider is eligible?
Visit www.vawc.virginia.gov and go to “Training Providers.” Limit your search to Workforce Innovation & Opportunity Act Eligible Training Providers. Courses at Virginia public institutions of higher education may also qualify if they meet the stated requirements, including resulting in a workforce credential.
What counts as a workforce credential?
A workforce credential is an industry-recognized certification, certificate, or degree.
Where can I get help with the application?
Call the Virginia Department of Taxation at (804) 786-2992 or visit www.tax.virginia.gov. For apprenticeship program information, call Virginia Works at (804) 221-5776.