VA · Tax Credit

Virginia Workforce Training Tax Credits: What Employers Can Claim

Virginia has no current state tax credit for employer training or new hires. The Worker Training Tax Credit (35% of eligible training costs, with a $500 or $1,000 per worker cap) and the Major Business Facility Job Tax Credit both apply only to tax years beginning before July 1, 2025. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025, unless Congress renews it. A Virginia Tax web page still describes the training credit without its end date, so rely on the Code of Virginia.

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State pre-filled: VA
Program type pre-filled: tax_credit

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HOW IT WORKS

Four steps, in this order.

1
Check the IRS WOTC page for any renewal by Congress
2
Ask your tax preparer about carryforwards from earlier tax years
3
Use WIOA OJT or VJIP for current hiring and training support
4
Do not claim Virginia credits for tax years starting July 1, 2025 or later

3 VERIFIED PROGRAMS

Where the Virginia money comes from.

Run by Virginia Department of Taxation; IRS for the federal WOTC. Every figure is from an official page, linked on each card.

Work Opportunity Tax Credit (federal, WOTC)

Lapsed for 2026 hires

LAPSED, AWAITING CONGRESS

WHAT YOU GET

None for people who start work after Dec 31, 2025.

HOW MUCH

Previously 40% of up to $6,000 of first-year wages, generally $2,400 maximum.

WHO RECEIVES THE MONEY

The employer, as a federal income tax credit.

WHO QUALIFIES

Hire from a targeted group and obtain state certification
Applies only to people who began work on or before Dec 31, 2025

Before you start: Yes. A certification request was due within 28 days of the start date.

Virginia Worker Training Tax Credit

Ended for tax years from July 1, 2025

ENDED

WHAT YOU GET

Was 35% of eligible training costs: classroom training at approved providers or training under an approved apprenticeship agreement.

HOW MUCH

$500 per qualified employee or $1,000 per non-highly compensated worker per year, $1 million statewide cap, 3-year carryforward.

WHO RECEIVES THE MONEY

The employer, as a nonrefundable credit against Virginia taxes.

WHO QUALIFIES

Business paying for eligible worker training
Provider on the Eligible Training Provider List or a Virginia public college, or approved apprenticeship
Not available for training run or paid for by the Commonwealth

Before you start: Not available for new tax years. Carryforward use only; confirm with Virginia Tax.

Major Business Facility Job Tax Credit

Ended for tax years from July 1, 2025

ENDED

WHAT YOU GET

Was a credit for creating at least 50 full-time jobs at a major business facility.

HOW MUCH

Not applicable for current tax years.

WHO RECEIVES THE MONEY

The employer, as a credit against Virginia taxes.

WHO QUALIFIES

Company creating at least 50 qualified full-time jobs
Retail is excluded

Before you start: Not applicable.

AVOID THESE

What gets Virginia Tax Credit claims denied.

Claiming WOTC for someone who started after Dec 31, 2025.
SOURCE: IRS.GOV
Claiming the Virginia training credit for a tax year starting July 1, 2025 or later.
SOURCE: LAW.LIS.VIRGINIA.GOV
Claiming credit for training run or paid for by the Commonwealth.
SOURCE: LAW.LIS.VIRGINIA.GOV
Training at a provider not on the approved list.
SOURCE: LAW.LIS.VIRGINIA.GOV

STRAIGHT ANSWERS

Virginia Tax Credit questions.

Is WOTC available for 2026 hires?

No, unless Congress renews it. The IRS says it covers people who begin work on or before December 31, 2025.

SOURCE: IRS.GOV

Does Virginia still offer a worker training credit?

The Code of Virginia limits it to tax years beginning before July 1, 2025. The Virginia Tax page still describes it, so confirm with the department.

SOURCE: LAW.LIS.VIRGINIA.GOV

Was the credit widely used?

No. JLARC found only five businesses were awarded worker training credits between FY19 and FY23.

SOURCE: RGA.LIS.VIRGINIA.GOV

What replaces tax credits for training help?

WIOA OJT and incumbent worker training through local boards, and VEDP grants for job-creating projects.

SOURCE: VIRGINIAWORKS.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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