Home > Policyholder News > GA State Tax Credit Available For Electronic Medical Records Training
There is a saying, “the future is now.” For the healthcare profession nothing can be truer, because the next major innovation, Electronic Medical Records (EMR), is here. While EMR is a great leap forward, this advance comes with substantial capital costs in equipment, software, etc. In addition to these obvious costs is one that does not readily standout; retraining costs of personnel to operate the equipment and systems. There is another old saying, “I am from the government and I am here to help.” This saying is most often said in jest but in this instance it is true. The state of Georgia, the nephew of Uncle Sam, rides to the rescue.
In 1994 the Georgia General Assembly passed the “Georgia Business Expansion Support Act” which in part grants employers a “Retraining Tax Credit” for costs expended to train employees on use of new equipment, technology, or operating systems. The Act was revised on January 1, 1998 and amended by HR439, 5/1/2009, but continues to be in effect.
The tax credit reduces state of Georgia income taxes equal to:
- One half of direct retraining costs
- Not to exceed $500 per approved training program per year for each full-time employee who successfully completed an approved retraining program
- Not more than 50% of the taxpayer’s state income tax for the taxable year before the credit allowed
- For tax year beginning 1/1/2009, the credit is limited to $1,250 per employee per year
Any unused tax credit can be carried forward for a period of ten years. Qualification for credit is determined based on eligible retraining programs, eligible retraining cost, and eligible employees.
Eligible Retraining Programs are programs that retrain current employees on newly installed equipment, new technology, or new operating systems. These include, but are not limited to, new computer platforms, and software upgrades and implementation. The training program can be accomplished through any qualified source including in-house trainers, outside trainers, technical schools or colleges.
For tax year beginning 1/1/2009, retraining credit is not allowed for training on most off-the-shelf software, i.e. word processing, spreadsheet, database, etc. The retraining program must be approved and certified by the Technical College System of Georgia.
Eligible Retraining Costs are qualified direct costs that are incurred and paid by the employer. These costs, by definition, include instructor salaries, materials, supplies, and textbooks. Also, eligible costs include employee wages during the training, course development costs, and reasonable travel costs. Costs specifically excluded are costs associated with renting or otherwise securing training space.
Eligible Employee means any employee who is a resident of the state of Georgia who works at least 25 hours per week and who has been continuously employed for at least 16 consecutive weeks. Any employee above first-line supervisor like executives, managers, partners are excluded.
The credit is claimed on Georgia tax form IT-RC. For tax years beginning before 1/1/2009, the credit could be claimed on a timely filed income tax return or could be claimed on an amended return if filed within three years of the statute date of the original timely filed return, plus extension. For tax years beginning 1/1/2009 and after, the credit may be claimed on a timely filed return or on an amended return if filed within one year of the statute date original timely filed return, plus extension.
There are a number of administrative processes which must be considered before the credit may be claimed such as procedures for approval of retraining programs, documentation requirements, appeals procedure, and program tax credit certification. For more information call us at 1-800-783-2080.
