Worker Training Tax Credit North Carolina
The Training Tax Credit provides employers with a credit against their State Income or Franchise taxes for the wages of new employees during training, or of existing employees being trained on new equipment.
North Carolina’s Worker Training Tax Credit works with the New & Expanding Industry Training Program as an added incentive to North Carolina employers to invest in worker training. Companies eligible for either the Job Creation Credit or the Machinery and Equipment Investment Credit of the William S. Lee Quality Jobs Act, are in turn eligible for the Worker Training Tax Credit.
To qualify for the William S. Lee Quality Jobs Act and the Worker Training Tax Credit, a company must be in specific industry categories and meet an average wage standard for the county in which the facility is located.
Each of North Carolina’s 100 counties is classified into one of five economic tiers. Companies may take up to $1,000 per eligible employee for trainee wages for eligible facilities located in Tier 1 counties or State-designated Enterprise Zones. Companies may take up to $500 per eligible employee for eligible facilities in all other North Carolina locations.
Eligible employees against whom training tax credits may be applied are those that are non-exempt from the Fair Labor Standards Act (FLSA) and meet the definition of new employees under the Job Creation Tax Credit, or existing (FLSA) employees being trained on new equipment or machinery. Employees may not be in a production capacity simultaneous with the training time counted toward the tax credit.
For more information on the Worker Training Tax Credit and other credits available under the William S. Lee Quality Jobs Act, visit the North Carolina Community College System website.
