What limitation applies to the amount of deductible training costs related to direct labor wage expenses?

The limitation that applies to the amount of deductible training costs related to direct labor wage expenses is set at not exceeding 10% of direct labor wage. This means that when organizations are calculating their allowable deductions for training expenses aimed at enhancing the skills of their workforce, they can only deduct an amount that corresponds to 10% of the wages they pay to their direct labor employees.

This regulation is in place to ensure that businesses do not claim excessive deductions relative to their labor costs, thus maintaining a balance between encouraging employee training and preventing potential misuse of the tax deduction for training expenses. The 10% threshold provides a clear, quantifiable boundary that businesses can easily calculate based on their wage outlays, ensuring that the deduction aligns proportionately with their investment in direct labor.

The other options reflect higher percentages that would not align with the regulatory framework governing these deductions, thus reinforcing the importance of adhering to the established guidelines in tax regulations.