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Virginia Worker Training Tax Credit

Virginia Worker Training Tax Credit

Supports workforce development in Virginia by helping employers invest in training through a state tax credit mechanism.

OpenVirginia Department of TaxationUnited StatesInstitution focus Virginia

The Virginia Worker Training Tax Credit is a non-refundable Virginia state tax credit equal to 35% of qualifying costs for providing eligible training to employees, or 35% of direct costs for providing manufacturing instruction to students in grades 6 through 12. The credit applies to tax year 2026 and is claimed on Virginia income, corporation, fiduciary, bank franchise, or insurance/utility tax …

Virginia employers may claim a 35% non-refundable tax credit on eligible employee training costs (capped at $500–$1,000 per employee per year) and on manufacturing instruction provided to grades 6–12 students.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.$1M

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Last verified: 22 Jul 2026Source: www.tax.virginia.gov