Workforce Development Programs

Iowa Industrial New Jobs Training Program (260E)

Program Purpose - To address the iowa workforce development center needs of NEW employees of a company that is expanding in or relocating to Iowa. The program is flexible and designed to meet the wide variety of training and employee development needs of a new or expanding business. The assistance available ranges from highly specialized educational programs to on-the-job training salary reimbursement for new trainees.
 
Funding Source - is authorized to issue training certificates (bonds) to pay for project costs. The certificate debt is repaid from diversion of 1 1/2 percent of the increased payroll withholding tax revenues resulting from the creation of the new jobs and occasionally increased property tax revenues resulting from capitol improvements.
 
Amount of Funding - The dollar amount available through the program is dependent upon training and development needs and projected revenue available to repay the certificates. The program has been utilized to fund very small training projects ($15,000) as well as extremely large projects ($4 million).
 
Eligible Applicants - Companies that are creating new jobs and involved in manufacturing, assembling products, or conducting research and development are eligible to participate in the program. Retail, health and professional services businesses do not qualify.
 
Application Procedure - The new or expanding business develops the training project with the EICC's Economic Development Incentive Programs Department. The Board of Directors of the college has project approval authority and authority to issue certificates to pay for the training project.

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Supplemental New Jobs Credit From Withholding

Program Purpose - The supplemental withholding credit is designed to promote the creation of high-quality jobs within Iowa by allowing an additional 11/2 percent withholding credit to provide additional funding for companies participating in the Iowa Industrial New Jobs Training Program (260E).
 
Amount of Funding - The amount of supplemental withholding credit is dependent upon the individual jobs that meet wage requirements and upon the wages that are paid to the individuals in these jobs 1 1/2 percent of the wages of qualifying jobs are available to fund program services.
 
Eligible Applicants - The jobs for which the credit is taken must have starting wages which are at least the county average or average regional wage, whichever is lower. New jobs that do not reach this threshold are not eligible for the supplemental 1 1/2 percent but still may utilize 1 1/2 percent of the new jobs wages covered under a 260E training agreement. Eligibility for the supplemental credit is based on a one-time determination of the starting wage by the college.
 
Application Procedure - To receive the supplemental credit from withholding, the company and the community college must have agreed to a supplemental provision to be contained in the 260E Industrial New Jobs Training Agreement.

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Iowa Workforce Development Center Fund

Program Purpose - This fund is one of the revenue sources that fund the 260F, training and retraining for targeted industries, innovative skills development and minority career opportunity programs. The assets of this fund are to be used to address iowa workforce development center needs of the state by funding these training programs.
 
Funding Source - Upon full repayment of certificates of participation or other obligations issued to fund a 260E job training program, the certificate repayments are diverted to this fund for up to 10 years. The total amount of diversion to this fund cannot exceed $10 million per year. The diversion occurs quarterly, thus the entire appropriation from the Iowa Workforce Development Center Fund Account to the Iowa Workforce Development Center Fund is not available at the beginning of the fiscal year but rather is made available in quarterly installments.

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Iowa Jobs Training Program (260F)

Program Purpose - To foster growth and competitiveness of Iowa's workforce and industry by ensuring that Iowa's workforce has the skills and expertise to compete with any workforce outside the state of Iowa. Forgivable loans are made to businesses to address the training needs of their workers. The training services provided may include vocational and skills assessment testing; adult basic education; job-related counseling; cost of company, college or contracted trainer or training services; training-related materials, equipment, software and supplies; lease or rental of training facilities; training-related travel and meals; subcontracted services; contracted or professional services.
 
Funding - The available funds are distributed on a formula basis to the community colleges. Community college develops training projects with businesses that are funded by forgivable loans, with maximum awards equaling $25,000 for each project at a business site. A business site may be approved for multiple projects, but the total of the awards for two or more projects shall not exceed $50,000 within a three-year period. Program awards of less than $5,000 require in-kind matching funds, program awards of $5,000 or more require cash match which converts at least 25 percent of the total project cost. Formation of consortiums of tow or more business within a community college district is allowable. Consortiums are eligible for maximum awards of $50,000 per training project.
 
Eligible Applicants - Business engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling or conducting research and development. The business site must be located in Iowa and businesses engaged in the provision of services must have customers outside of Iowa. Training may only be provided for employees who are currently employed by the business and for whom the business pays withholding tax.
 
Application Procedure - The application procedure begins with the community college economic development staff, which assists the business in developing training projects. An application for assistance is then submitted by the college to IDED on behalf of the business. The application is then scored against pre-determined evaluation criteria and, if it receives a score of 65 or more, is approved for funding. After approval the college enters into a training contract with the business.

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Iowa Job Training Program - Business Networks (260F)

Program Purpose - To foster growth and competitiveness of Iowa's workforce and industry by ensuring that Iowa's workforce has the skills and expertise to compete with any workforce outside the state of Iowa. Forgivable loans are made to five or more business located in two or more community college districts to address a common training need of their workers. The training services provided may include vocational and skill assessment testing; adult basic education; job-related counseling; cost of company, college or contracted trainer or training services; training-related materials, equipment, software and supplies; lease or rental of training facilities; training-related travel and meals; subcontracted services; contracted or professional services.
 
Funding - One of the participating community colleges is selected as the project coordinator and will apply for this funding on behalf of the businesses. Projects will be funded on a first-come, first-served, basis. A maximum award of $50,000 per participating community college is allowed. Program awards of less than $5,000 require in-kind matching funds, program awards of $5,000, or more require cash match which covers at least 25 percent of the total project cost.
 
Eligible Applicants - Networks of five or more businesses from two or more community college districts that are engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling or conducting research and development. The business sites must be located in Iowa and businesses engaged in the provision of services must have customers outside of Iowa. Training may only be provided for employees who are currently employed by the businesses and for whom the business pays payroll withholding taxes.
 
Application Procedure - The application procedure begins with the community college economic development incentive programs staff, who will assist the networked businesses in developing training projects. An application for assistance is then submitted by the community college to Iowa Department of Economic Development on behalf of the businesses. The application is then scored against pre-determined evaluation criteria and, if it receives a score of 65 or more, is approved if funding is still available. After approval the community college enters into training contracts with the businesses.

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