Training Assistance

New Job Training Program Purpose Provide assistance to companies creating a substantial number of new jobs in Missouri. Whether the company is expanding its workforce or locating a new facility in the State, this program is designed to assist with the costs of training the employees in the newly created jobs. How the Program Works Local community colleges initially finance training through the sale of certificates. The certificates are repaid by using tax credits from the employer's regular withholding that is based on a percentage of the gross wages paid to employees in the new jobs. The tax withholding is equal to 2.5% of gross wages for the first 100 new jobs and 1.5% for the remaining new jobs. To repay the training and certificate costs, the tax withholding for projects in excess of $500,000 may be claimed up to eight years, and those projects not in excess of $500,000 may be claimed up to ten years. Eligible Applicants Businesses with a sound credit rating currently located in or locating to Missouri engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products are eligible. Companies that conduct research and development or provide services in interstate commerce are also eligible. Retail businesses do not qualify for the program. Eligible Use of Funds Funding can be used toward reimbursement for the training and costs associated with the issuance of certificates. Training activities such as skill assessment, orientation, pre-employment training, occupational skill training, and on-the-job training can be included in the project. Withholding tax credits claimed in excess of the amount of the project are returned to the Department of Revenue. Application Procedure The appropriate community college will submit a "Notice of Intent" for a potential project to the Department of Economic Development's Division of Workforce Development (DWD). DWD determines company eligibility and reviews for training duplication. On behalf of the company, the community college will then submit an application for the New Jobs Training Program outlining training details. Upon approval of the application by DWD, the community college may enter into a formal contract agreement with the company. However, the community college board of trustees must approve all final project agreements. Funding Limits The current limit on the total amount of outstanding certificates sold by all community college districts is $55 million. There is also a limit on the amount of funds available each year. Special Program Requirements Other eligibility criteria may be applied, such as types of occupations, types of industries, and minimum wage rates. Missouri Customized Training Program Purpose Provide assistance to Missouri employers for the training and retraining of new and existing employees. How the Program Works The Department of Economic Development through the Division of Workforce Development operates the program in cooperation with the Department of Elementary and Secondary Education. Missouri employers may apply for On-the-Job Training, Classroom Training or a combination of the two. On-the-Job Training helps to reduce the cost of production loss associated with training new employees. On-the-Job Training is for companies creating new jobs in the state. The program provides a fifty percent wage reimbursement for new employees in selected occupations for their first several weeks on the job. Companies provide training to the new employees on an individualized basis while making a product. The length of training is tied to the skill level required and the time needed for the new employee to become productive. Classroom Training provides funding for employers training new or existing employees in a classroom setting. Assistance may be available for training costs such as curriculum development, instructional salaries, and training materials. Local education agencies, private vendors, or company personnel may provide the training. Eligible Applicants Missouri companies providing permanent, full-time employment to Missouri residents if the company is: creating new jobs in the state above their peak employment level in the past year; or retraining existing employees as a result of a substantial new capital investment. Application Procedure Missouri employers should submit an Employer Request for Training 30 days prior to the start date of training or hiring. The Customized Training staff will review the application and notify the employer of the final decision. Special Program Requirements Funding amounts are approved on an individual basis. Some occupations and industries may not be eligible for this program and minimum wage rates apply.