|Taxpayers located in an Enterprise Zone carrying out qualified job training programs for their employees may claim a tax credit of 10% of eligible training costs. The employees must be working predominantly within an Enterprise Zone. On-the-job training does not qualify as a job training program. Excess credits may be carried forward for up to 12 years.
Qualified job training programs are structured training or basic educational programs conducted on-site or off-site by the taxpayer or another entity to improve the job skills of employees who are employed by the taxpayer. Qualified investments in job training are:
For more detailed information, refer to Department of Revenue publication FYI Income 31.
- Land, building, real property improvement, leasehold improvement, or space lease costs, and the cost of any capital equipment purchased or leased by the taxpayer used entirely within an Enterprise Zone primarily for qualified job training program purposes, or to make a training site accessible to the extent such investments or costs do not qualify for the Enterprise Zone investment tax credit; and
- Expenses for a qualified job training program, whether incurred within or outside of an Enterprise Zone, including expensed equipment, supplies, training staff wages or fees, training contract costs, temporary space rental, travel expenses, and other expense costs of qualified job training programs for employees working predominantly within an Enterprise Zone. Wages of employees being trained are not eligible expenses.