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of the donation. The amount of the credit is equal to 30% of For taxable years beginning on or after January 1, 2019,
the fair market value of such crops. No taxpayer is permitted but prior to January 1, 2025, businesses primarily engaged
to claim more than $5,000 in credits for a taxable year. Any in manufacturing may also claim the Worker Training Tax
unused credit amount may be carried forward for 5 years. Credit on the basis of manufacturing-related orientation,
The credit is only allowed if: instruction, and training programs for students in grades 6
through 12. The credit is equal to 35% of direct costs incurred
(i) the use of the donated food crops by the donee during the taxable year in connection with the program, not
nonprofit food bank is related to providing food to the to exceed $2,000.
needy;
Before claiming the credit on their income tax return,
(ii) the donated food crops are not transferred for use employers and businesses must apply for certification of the
outside the Commonwealth or used by the donee amount of allowable credit using Form WTC, Worker Training
nonprofit food bank as consideration for services Tax Credit Application, by April 1 of the year following the
performed or personal property purchased; and year in which the training expenses or orientation, instruction,
(iii) the donated food crops, if sold by the donee nonprofit and training program expenses were paid or incurred. All
food bank, are sold to the needy, other nonprofit food approved employers and businesses filing a timely Form
banks, or organizations that intend to use the food WTC will be notified of their allowable credit by June 30 of the
crops to provide food to the needy. calendar year following the year in which the expenses were
incurred. The maximum Worker Training Credits granted to
No more than $250,000 in tax credits may be issued in any
all employers and businesses is limited to $1 million annually.
fiscal year.
If the total credits approved exceed this amount, each will be
The business must apply for the credit by February 1 using prorated. This credit is nonrefundable but excess credit may
Form FCD-1. Submitting a late application will disqualify you be carried over for up to the next 3 taxable years. To claim
from the credit. All applications must be sent to the Virginia this credit, complete Section 1, Part 28 of Schedule 500CR.
Department of Taxation, Tax Credit Unit, P.O. Box 715, For information on pre-approved apprenticeship programs,
Richmond, VA 23218-0715. This credit requires certification contact the Virginia Department of Labor and Industry
from the Tax Credit Unit to be claimed on your tax return. A at (804) 786-1035. For information on approved orientation,
letter will be sent to certify the credit. instruction, and training programs for manufacturers,
contact the Virginia Department of Education, Office of
Worker Training Tax Credit Career, Technical, and Adult Education, P.O. Box 2120,
Richmond, VA 23218-2120, call (804) 225-2052, or email
For taxable years beginning on and after January 1, 2019,
cte@doe.virginia.gov.
but before July 1, 2025, businesses may claim the Worker
Training Tax Credit for the training costs of providing eligible
Virginia Housing Opportunity Tax Credit
worker training to qualified employees. The credit is 35% of
expenses incurred by the business during the taxable year Effective for taxable years beginning on and after January
for eligible worker training, subject to certain limitations. 1, 2021, but before January 1, 2026, a housing opportunity
If the recipient of the training is a qualified employee, the tax credit (“HOTC”) is available for certain low-income
credit may not exceed $500 per qualified employee annually. building projects in an amount up to the amount of federal
If the recipient of the training is a non-highly compensated low-income housing tax credit (“LIHTC”) allocated or allowed
worker, the credit may not exceed $1,000 per non-highly by the Virginia Housing Development Authority (“VHDA”) to
compensated worker annually. such projects. To be qualified, the project is required to be a
“Eligible worker training” means the training of a qualified qualified low-income building, as defined under federal law,
employee or non-highly compensated worker in the form of: that is:
• credit or noncredit courses at any institution • Located in Virginia;
recognized on the Eligible Training Provider List or • Placed in service on or after January 1, 2021; and
at any Virginia public institution of higher education,
• Allocated HOTC by VHDA.
as such term is defined in Va. Code § 23.1-100,
or as described in Va. Code §§ 23.1-3111, 23.1- For taxable years beginning on and after January 1, 2021,
3115, 23.1-3120, and 23.1-3125, that results in the but before January 1, 2026, a qualified taxpayer may claim a
qualified employee or non-highly compensated housing opportunity tax credit against its Virginia tax liability
worker receiving a workforce credential; or prior to reduction by any other credits allowed the taxpayer.
The housing opportunity tax credit may be allocated by pass-
• instruction or training that is part of an apprenticeship
through entities to some or all of its partners, members, or
agreement approved by the Commissioner of Labor
shareholders in any manner agreed to by such persons,
and Industry.
regardless of whether or not any such person is allocated
For more information regarding the Eligible Training Provider or allowed any portion of any federal low-income housing
List, see the Virginia Workforce Connection website, at tax credit with respect to the qualified project, whether or
www.vawc.virginia.gov. not the allocation of the housing opportunity tax credit under
the terms of the agreement has substantial economic effect
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