New tax credits benefit businesses that educate employees
ATLANTA — Georgia employers can now take advantage of new tax credits when they support employees’ successful completion of a General Educational Development (GED®) test. The Technical College System of Georgia (TCSG) will work with businesses in the state to promote the participation and success of employee GED® attainment.
“Nearly 18 percent of Georgia’s adult population has less than a high school education,” said Commissioner Gretchen Corbin. “Thanks to this unique opportunity passed by the Georgia General Assembly, we are one step closer to fulfilling Gov. Deal’s goal of full literacy in Georgia, while preparing Georgia businesses to compete in a global economy.”
Employers can take advantage of the tax credit in either of two ways. An employer can earn a tax credit of $1,200 per employee if that worker is compensated, at his/her normal rate of pay, for completing a 40-hour class and passing the GED® Test. The class must be a basic skills education class approved by the Technical College System of Georgia, and can either be part of an existing program or a unique program established by the employer. In both cases, a minimum of 40 hours of instruction is required.
A second option would award a $400 tax credit to an employer when a worker takes and passes a GED® Test paid for by that employer.
An employee can be included in only one of the tax credit categories, not both. An employer can earn tax credits of up to $100,000 per year for supporting employees in their achievement of a GED®.
“We want every adult employee in Georgia to acquire the necessary basic skills to be successful their workplace,” said TCSG Assistant Commissioner for Adult Education Beverly Smith. “In doing so, we make Georgia’s businesses stronger, which in turn, makes Georgia stronger.”
TCSG’s Office of Adult Education can assist employers by answering questions about class types and other class considerations, as well as estimating tax credit benefits. More information is available at 404-679-1641.