Virginia WRC - Worker Retraining Tax Credit Application

WRC - Worker Retraining Tax Credit Application
Form WRC - Worker Retraining Tax Credit Application
Virginia
Form WRC

Worker Retraining Tax Credit Application

Tax Year Ending
________, ______

File Form WRC, applicable schedules, and required enclosures by April 1.

This credit must be approved before being claimed on your return. Approval of courses, apprenticeship programs, and manufacturingrelated orientation, instruction, and training programs is required. See the instructions for filing requirements prior to completing this
application.
Business Type:
 Corporation
  S Corporation
  Sole Proprietor
 Partnership
  Limited Liability
Company (LLC)

Business Name

FEIN / SSN

Trading As

NAICS Code

Street Address
City, State, ZIP Code

Have you applied for any other credits this year? If yes, indicate which credit(s)__________________________________________
Part I: Description of Business Activities - Describe the principal activity of your business.

Part II: Tax Credit Based on Noncredit Courses From a Community College or Private School
Complete Schedule 1, then enter the total number of courses for which this credit will be claimed and the total credit requested.
Complete a separate Schedule 1 for each noncredit course. See the instructions for more information.
Total Tax Credit Requested for Noncredit Courses
From Schedule 1

Total Number of
Courses

Total Credit Requested
(Schedule 1, Column E)

Part III: Tax Credit Based on Apprenticeship Programs
Complete Schedule 2, then enter the name of each apprenticeship program approved by the Commissioner of Labor and Industry for
which this credit will be claimed, the total cost, and credit requested.
Program Name

Total Number of
Programs

Total Number of
Apprentices

Total Credit Requested
(Schedule 2, Column E)

Part IV: Tax Credit Based on Manufacturing-Related Orientation, Instruction, and Training Programs
Complete Schedule 3, then enter the total number of manufacturing-related orientation, instruction, or training programs for which this
credit will be claimed and the amount of credit requested.
Total Tax Credit Requested for Manufacturing-Related
Orientation, Instruction, and Training Programs
From Schedule 3

Total Number of
Programs

Total Credit Requested
(Schedule 3, Line 8)

Declaration
I, the undersigned officer or other person authorized to act on behalf of the business entity, have read and understand the limitations
and restrictions set forth for this credit application.
Taxpayer Signature

Title

Printed Name

Date

Tax Preparer Signature

Title

Printed Name

Date

Preparer Address

Va. Dept. of Taxation  1901042   Rev. 08/18

Phone Number

Phone Number

Form WRC
Schedule 1
Page

Worker Retraining Tax Credit Application for
Noncredit Courses to be Approved by VEDP
Complete a Schedule 1 for each course.

of

Name as it Appears on Form WRC

FEIN or SSN

List each noncredit course from a Virginia community college or a school approved by the Virginia Economic
Development Partnership for purposes of claiming this credit. Complete a separate Schedule 1 for each
course. See the definition of "eligible worker retraining" in the instructions before completing this schedule.

A.

Name of School

VEDP USE ONLY
Course is:
Approved

Type (Check One)

B.

Tax Year Ending
________, ______

Contact

  Community College
  Private School
  Check if STEM or STEAM discipline

Not Approved

Phone Number

Initials: __________

Course Number

Course Title

C. Course Description, Including Dates, and Prerequisites:
Signature
Name Printed
Phone Number

Qualifying Employees Taking Qualifying Noncredit Courses A qualified employee cannot be a relative of any owner or the
employer claiming the credit and cannot own, directly or indirectly, more than 5% in value of the outstanding stock of a corporation
claiming the credit. See the "Qualified Employee" section of the instructions.

Column A
Employee Name and SSN

Column B
Date Course
Completed

Column C
Course Cost

Column D
Date Paid

Column E
Credit Requested*

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Total for This Page
Enter on the First Schedule 1 Only – Total Amount from All Other Schedules 1 Completed
Enter in Part II, Form WRC and Here – Total of All Schedules 1 Completed
* 30% of Column C costs or, if a private school, up to $200 per qualified employee annually ($300 per qualified employee annually if
the eligible worker retraining includes retraining in a STEM or STEAM discipline).
Enclose this schedule with Form WRC along with a copy of all documentation used to complete this form including enrollment forms
from the school showing classes taken and payments made.

Form WRC
Schedule 2
Page

Worker Retraining Tax Credit Application Schedule – Retraining Courses
Undertaken Through an Approved Apprenticeship Program

Tax Year Ending
________, ______

of

Name as It Appears on Form WRC

FEIN or SSN

Column A
Employee Name and SSN*

Column B
School Name

Check if:

1.

Private
STEM / STEAM

2.

Private
STEM / STEAM

3.

Private
STEM / STEAM

4.

Private
STEM / STEAM

5.

Private
STEM / STEAM

6.

Private
STEM / STEAM

7.

Private
STEM / STEAM

8.

Private
STEM / STEAM

9.

Private
STEM / STEAM

10.

Private
STEM / STEAM

Column C
Completion
Course Name
Date

Column D
Column E
Course
Credit
Date Paid
Cost
Requested**

Total of Column E for This Page
Enter on the First Schedule 2 Only – All Other Schedules 3, Column E Totals Combined
Enter on First Schedule 2 Only: Total Credit Requested for All Pages –
Enter in Part III, Form WRC and Here – All Schedules 2, Column E Totals Combined

*A qualified employee cannot be a relative of any owner or the employer claiming the credit and cannot own, directly or indirectly, more than 5% in value of the outstanding stock of a
corporation claiming the credit. See the "Qualified Employee" section of the instructions. ** 30% of Column D costs or, if a private school, up to $200 per qualified employee annually or
$300 per qualified employee annually if the eligible worker retraining includes retraining in a STEM or STEAM discipline.
Enclose this Schedule with Form WRC. Also enclose a signed copy of:
1.	 An Apprenticeship Action Form is required for each student. Applications will not be processed without this form. Students without the form will be excluded from the credit amount granted.
2.	 Proof of payment by the employer.

Form WRC
Schedule 3
Page

of

Worker Retraining Tax Credit
Application for Manufacturing-Related
Orientation, Instruction, and Training

Tax Year Ending
________, ______

A manufacturing-related orientation, instruction, and training program must be approved by the Virginia Economic
Development Partnership to qualify for this credit. See the instructions before completing this schedule.
Name as it appears on Form WRC

FEIN / SSN

Enclose Schedule 3 with Form WRC, along with an approval letter from the local school division and documentation of the
direct costs incurred during the taxable year in conducting the orientation, instruction, or training program. If requesting
credit for more than one program, complete a separate Schedule 3 for each program conducted during the taxable year.
Part I – Enter the program information, including a detailed description of the manufacturing-related orientation, instruction,
and training program. Enclose additional pages, if necessary.
Part II – On Lines 1-4, enter the program cost(s) on the applicable line(s). On Line 6, calculate the allowable credit amount
for the program listed in Part I of this page. On Line 7, enter the total credit requested from all pages combined. On Line
8, enter the lesser of the allowable credit amount or $2,000 then transfer this amount to Form WRC, Part IV, “Total Credit
Requested” line.

Part I – Program Information
Program Name

Instructor / Trainer Name

Contact Name

Contact Phone Number

School District Name

Program Date(s)
Contact Email Address

Location

Street Address

City

State

ZIP Code

Course Description

Part II – Credit Calculation
1. Salaries or wages paid to instructors and trainers, prorated for the period of instruction or training.

.00

2. Costs for orientation, instruction, and training materials.

.00

3. Amounts paid for machinery and equipment used primarily for instruction and training.

.00

4. The cost of leased or rented spaced used primarily for conducting the program.

.00

5. Total direct costs. Add Lines 1-4.

.00

6. Total credit amount for this page only. Multiply Line 5 by 35% (.35).

.00

7. Total credit amount from all Schedules 3 completed (enter on first Schedule 3 only). Add the
amounts on Line 6 from each Schedule 3.

.00

8. Credit requested: Enter the amount on Line 7 above or $2,000, whichever is less. Transfer this
amount to Form WRC, Part IV, “Total Credit Requested” line.

.00

VEDP Use Only

Course is :	

 Approved	

  Not Approved	

Initials:_________________________

Instructions for Form WRC,
Worker Retraining Tax Credit Application
Summary of Filing Requirements
Use this table to determine the application requirements for each type of training program for which the Worker Retraining
Tax Credit will be claimed. See the instructions below for contact information and mailing addresses for the Virginia
Economic Development Partnership (VEDP) and the Department of Taxation.
If you are claiming the credit based on––

Complete Schedule(s)––

Complete these parts
on Form WRC––

Submit application
to––

Noncredit Courses

Schedule 1

Parts I and II

VEDP

Apprenticeship Programs

Schedule 2

Parts I and III

Department of Taxation

Manufacturing-Related Orientation, Instruction, and
Training Programs

Schedule 3

Parts I and IV

VEDP

Any combination of noncredit courses, apprenticeship
programs, and manufacturing-related programs

Schedules 1, 2, and 3
(as applicable)

Part I and Parts II, III, IV
(as applicable)

VEDP

General Information
The Worker Retraining Tax Credit may be claimed by employers
that provide qualifying retraining for their employees through
noncredit classes or through an apprenticeship agreement
approved by the Commissioner of Labor and Industry.
Qualifying apprenticeship programs may include credit and
noncredit classes.
When claiming the credit on the basis of employee retraining,
the credit is equal to:
•	

30% of all training costs for qualified employees who
attend Virginia community colleges or a private school
or an apprenticeship program, and

•	

the actual costs up to $200 ($300 if the eligible worker
retraining includes retraining in a STEM or STEAM
discipline) per qualified employee annually for those
employees who attend private schools.

For taxable years beginning on and after January 1, 2018,
but prior to January 1, 2022, the Worker Retraining Tax
Credit may also be claimed by certain businesses primarily
engaged in manufacturing. The businesses must conduct
manufacturing-related orientation, instruction, and training
programs in Virginia relating to the manufacturing activities
of the taxpayer. To be eligible for the credit, the orientation,
instruction, and training program must be approved by Virginia
Economic Development Partnership (VEDP) and must:
(i)	 provide orientation, instruction, and training solely to
students in grades 6-12;
(ii)	 be coordinated with the local school division; and
(iii)	 be 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 Virginia.
If claiming the credit on the basis of manufacturing-related
orientation, instruction, and training programs, the credit is
equal to 35% of the direct costs associated with the program,
not to exceed $2,000. Direct costs include:

•	 salaries or wages paid to instructors and trainers,
prorated for the period of instruction or training;
•	 costs for orientation, instruction, and training materials;
•	 amounts paid for machinery and equipment used
primarily for the instruction and training; and
•	 the cost of leased or rented space used primarily for
conducting the program.
The total credit granted to all employers and businesses is
limited to $1 million for each fiscal year. If the total qualifying
credits exceed this amount, the credit will be prorated.
Employers and businesses must apply for their share of
the available credit by filing Form WRC with the VEDP or
Department of Taxation, as applicable, to determine their
proportionate share of the credit. Notification of the authorized
credit amount must be received before the credit may be
claimed on the tax return.
This credit is nonrefundable, but excess credit may be carried
forward for the next 3 taxable years. No credit can be carried
back to a preceding taxable year.

Applicability of the Credit
If claiming the credit on the basis of noncredit classes or
apprenticeship programs, the credit is allowable against
individual income tax, estates and trusts tax, corporate income
tax, bank franchise tax, insurance premiums license tax, and
license tax on telegraph, telephone, water, heat, light, power,
and pipeline companies.
If claiming the credit on the basis of manufacturing-related
orientation, instruction, and training programs, the credit
is allowable against individual and corporation income tax.

Definitions
Eligible Worker Retraining – the retraining of a qualified
employee that promotes economic development. Retraining of
a qualified employee will promote economic development when
the employment brings new income into Virginia, stimulates

additional employment, improves existing processes, products
or services, or is the basis for further economic growth. The
retraining can be accomplished through:
(i)	 noncredit courses at any Virginia community college or
a private school or
(ii)	 worker retraining programs undertaken through
an apprenticeship agreement approved by the
Commissioner of Labor and Industry.
Manufacturing – processing, manufacturing, refining, mining,
or converting products for sale or resale.
Noncredit Courses include, but are not limited to:
•	 specific job-related skills/studies;
•	 computer training due to process or equipment change
of entry-level computer skills (ongoing computer software
upgrades are not included);
•	 continuous improvements such as team building and
quality training;
•	 management and supervisory training;
•	 safety and environmental training programs; and
•	 credit or noncredit approved apprenticeship courses.
Qualified Employee – an employee who works in a full-time
position requiring a minimum of 1,680 hours in the normal
year of the employer’s operation and standard fringe benefits
are offered to the employee. Employees eligible to take
credit or noncredit courses undertaken through a registered
apprenticeship agreement must be employed in a full-time
position requiring a minimum of 1,924 hours in the normal
year of the employer’s operation unless otherwise approved
by the Virginia Apprenticeship Council. A qualified employee
shall not be a spouse, child, grandchild, parent or sibling of
an employer, or in the case of a corporation, an individual that
owns, directly or indirectly, 5% or more of the corporation’s
stock. Employees in seasonal or temporary positions are not
qualified for this program.
Retraining – an upgrade in training for existing employees,
which is identified as essential to the production or distribution
of a product, rendering services or retraining provided through
an apprenticeship agreement approved by the Virginia
Apprenticeship Council.
Standard Fringe Benefits – benefits that a particular
employer offers to its full-time employees.
STEM or STEAM discipline – a science, technology,
engineering, mathematics, or applied mathematics related
discipline as determined by the VEDP in consultation with the
Superintendent of Public Instruction. The term also includes
a health-care related discipline.
Training Costs – instruction, instructional materials,
facilities fees and other costs determined to be necessary
to the delivery of the training. Trainee wages and curriculum
development costs are not covered.

Process Overview For Claiming This Credit
To claim the credit, you must complete a 3-step process.

Step 1: Determine Eligibility of Programs for Credit
Noncredit Courses
To qualify, employers must retrain employees through
noncredit courses. To determine if the training will qualify
for this credit, complete Parts I and II, and Schedule 1
of Form WRC and send it to Virginia Jobs Investment
Program, Virginia Economic Development Partnership,
901 East Cary Street Richmond, Suite 900, VA 23219. For
questions, call (804) 545‑5706. VEDP will determine if the
course qualifies as eligible retraining. VEDP will forward this
determination to the Department of Taxation for Step 2.
Apprenticeship Programs
To qualify, employers must retrain employees in a
Commissioner of Labor and Industry approved program. For
program information, call Department of Labor and Industry
at (804) 786-8009.
File Form WRC, completing Parts I and III and Schedule 2
(see Exception below), with the Department of Taxation,
Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715,
to determine program applicability and authorized credit.
EXCEPTION: If applying for retraining credits for noncredit
courses or manufacturing-related orientation, instruction and
training programs and an apprenticeship program, complete
the appropriate parts of Form WRC and file it with VEDP. After
processing Schedule 1 and/or Schedule 3, VEDP will send
Form WRC to the Department of Taxation.
Manufacturing-Related Orientation, Instruction, and
Training Programs
To qualify, businesses that are primarily engaged in
manufacturing must conduct orientation, instruction, and
training relating to the manufacturing activities undertaken
by the business and meet the criteria listed in the General
Information section above.
Complete Form WRC, Parts I and IV and Schedule 3. File
the form and enclosures with Virginia Jobs Investment
Program, Virginia Economic Development Partnership,
901 East Cary Street Richmond, Suite 900, VA 23219.
VEDP will determine if the course qualifies as an eligible
manufacturing-related orientation, instruction, and training
program. VEDP will forward this determination to the
Department of Taxation for Step 2.

Step 2: Requests for Additional Information and
Notification of Authorized Credit
Additional Information
If the VEDP or the Department of Taxation needs additional
information, they will contact you by May 1 and you will
have until May 15 to respond. If you have not received
acknowledgment of your application from the Department of
Taxation by May 31, call (804) 786‑2992.

The Department of Taxation will issue the credit by June 30.
If you have not received your credit certification by July 15,
please call (804) 786‑2992.

See the definitions listed in these instructions before
completing Schedule 2 to ensure that the training costs and
employees listed qualify for the credit.

Extension of Time for Filing

Part IV: Credit Based on Manufacturing-Related
Orientation, Instruction, and Training

If the tax return upon which this credit will be claimed is
due on or before May 1, you may need to file an automatic
extension payment for any tax due or file an amended return
upon receipt of the credit information.

Step 3: Claim Worker Retraining Tax Credit on Your
Return

Credit will be granted for manufacturing-related orientation,
instruction, and training programs approved by the VEDP.
Complete Form WRC, Schedule 3.

After receiving notification of authorized credit, you may claim
the credit on the applicable Virginia tax return. See the tax
return instructions for computation and enclosure details.

If additional space is needed for the course description, attach
a separate page. If you are claiming the credit for more than
one program conducted during the taxable year, complete a
separate Schedule 3 for each program. Enter the total number
of programs in the space provided in Part IV, Form WRC.

Instructions For Completing Form WRC

When and Where To File Form WRC

Claiming the credit is a multi-step process. Complete Form
WRC and the required schedules using the definitions listed
earlier in these instructions. To assist you in completing
Schedules 1, 2, and 3 correctly, review these definitions:
Eligible worker retraining, qualified employee, noncredit
courses, retraining, standard fringe benefits and training costs.

File Form WRC no later than April 1 in order for the
qualification process to be completed. Forms received
after that date may not be processed and credit may not be
approved.

Part I: Description of Business Activities
Enter the principal activity of the business.

Part II: Credit Based on Noncredit Courses From a
Community College or Private School
Credit will be granted for retraining through noncredit courses
approved by the VEDP.
Complete Form WRC, Schedule 1. If additional space is
needed, enclose a separate page. Complete a separate
Schedule 1 for each course for which the credits are
requested. Enter the total number of courses and total credit
requested for training costs for approved courses in the space
provided in Part II of the Form WRC.

Part III: Credit Based on Apprenticeship Programs
Credit will be granted for apprenticeship programs (approved
by the Commissioner of Labor and Industry) which meet the
qualifications for this credit. See the definitions provided earlier
in these instructions, before completing this section.
Complete Form WRC, Schedule 2.
•	 If you have more than one school, use a separate
Schedule 2 for each school.
•	 Enter the student names in alphabetical order.
•	 If including additional summary worksheets, submit one
worksheet for each school and complete all fields as
listed on Schedule 2 (list student names in alphabetical
order, school name, course name, etc.).
•	 Organize each school in a separate folder with Form
WRC, Schedule 2, invoices, Labor Department
Apprenticeship Form and copies of E-checks or canceled
checks.

File Form WRC, Schedule 1 and/or Schedule 3, and required
enclosures with VEDP if applying on the basis of––
•	 Noncredit courses;
•	 Manufacturing-related orientation, instruction, and
training programs;
•	 Any combination of noncredit courses, apprenticeship
programs, and manufacturing-related programs;
Mail to:
Worker Retraining Tax Credit Application
Virginia Jobs Investment Program
Virginia Economic Development Partnership
901 East Cary Street
Suite 900
Richmond, VA 23219
File Form WRC, Schedule 2, and all required enclosures
with the Department of Taxation if applying on the basis of
apprenticeship programs only.
Mail to:
Tax Credit Unit
Virginia Department of Taxation
P.O. Box 715
Richmond, Virginia 23218-0715

What To Enclose with Form WRC
If Schedule 1 of Form WRC was completed, enclose a copy
of the documentation used to complete Schedule 1, including
enrollment forms from the school/college showing the courses
taken and payment by the employer.
If Schedule 2 of Form WRC was completed, enclose a signed
copy of the Apprenticeship Action Form, Apprenticeship
Related Instruction Enrollment Form, and proof of payment
by employer.

If Schedule 3 of Form WRC was completed, enclose
an approval letter from the local school division and
documentation of direct costs incurred during the taxable year
in conducting manufacturing-related orientation, instruction,
and training programs. Acceptable documentation includes,
but is not limited to, calculations of salary prorations, receipts
for materials, receipts for equipment, and lease agreements
for leased or rented space.

Pass-Through Entities
The Virginia Department of Taxation will issue a credit
certification letter specifying the amount of credit authorized
to each partnership, S corporation or limited liability company
qualifying to claim a portion of this credit.
Each pass-through entity must file Form PTE with the
Department of Taxation within 30 days after the credit is
granted. This information should be sent to: Department of
Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond,
VA 23218-0715 or you may fax it to (804) 774-3902.

All pass-through entities distributing this credit to their
owner(s), shareholders, partners, or members must give
each a Schedule VK‑1, Owner’s Share of Income And Virginia
Modifications And Credits.

Where To Get Help
Write to the Virginia Department of Taxation, Tax Credit
Unit, P.O. Box 715, Richmond, VA 23218-0715 or call
(804) 786‑2992. To order forms, call (804) 367-8031. Visit
www.tax.virginia.gov for most Virginia tax forms and
additional tax information. Forms are also available from the
office of your local Commissioner of the Revenue, Director
of Finance, or Director of Tax Administration.
Virginia Tax Bulletin 99-4, dated April 5, 1999, provides
additional information on the Worker Retraining Tax Credit
and how the credit applies. To obtain this bulletin, visit our
website or write to the address provided above.