Often considered the best and most flexible job–training program in the United States, the Iowa Industrial New Jobs Training Program (260E) funds a wide variety of employee training and development programs for companies that expand their operations or locate a new facility in the state. The program helps meet your needs, whether you require highly specialized educational programs or basic skills training for new positions.
The program is financed through bonds sold by the regional community college. Depending on wages paid, the business then diverts either 1.5% or 3% of the Iowa state withholding taxes generated by the new positions to the community college to retire the bonds. This allows companies to offer training at essentially no cost, using funds that otherwise would have been paid to the state as withholding taxes.
Besides increasing their worker’s productivity and company profits, businesses that participate in the program may also be reimbursed for up to 50% of their annual gross payroll costs spent for on-the-job training. They may also be eligible to receive an Iowa New Jobs Tax Credit if they increase employment in the state by at least 10%. Training can be provided by community or other local colleges, or private contractors, including in-house trainers.
To be eligible, a business may be new to Iowa, expand their Iowa workforce or relocate to the state. Alliant Energy’s experienced Economic Development team helps companies navigate the program requirements.
To be eligible for funding, a business must:
- Engage in interstate or intrastate commerce to manufacture, assemble, warehouse, wholesale or conduct research and development.
How does the program work?
- Iowa’s 15 community college administer training. Award amounts and training plans depend upon the number of new jobs pledged and starting wages.
- Participants may be eligible for reimbursement up to 50% of the approved award amount for on-the-job training.
The funds can be used for a variety of valuable services, including:
- Job-related instruction.
- Skills assessment.
- Training equipment, materials and supplies.
- Customized or general instruction at your company facilities.
- Reimbursement of training travel costs for employees or trainers.
- College tuition, books and fees.
- Payment of a portion of new employees’ wages during training period.
New Jobs Tax Credit
The Iowa New Jobs Tax Credit is an Iowa corporate income tax credit available to companies that enter into a New Jobs Training Agreement (260E) and expand their Iowa employment base by 10% or more.
The amount of this one-time tax credit will depend upon the wages a company pays and the year in which the tax credit is first claimed. The maximum tax credit in 2021 is $1,944 per new employee. Unused tax credits may be carried forward up to ten years.
How do I get started?