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 Programming Requirements:
Other eligibility criteria may be applied, such as
types of occupations, types of industries, and
minimum wage rates.
Contact:
MO Department of Economic Development
Division of Workforce Development
Employer Relations Section
421 East Dunklin, PO Box 1087
Jefferson City, MO 65102
Phone: (573) 526-8254 Fax: (573)522-9496
Phone: 800-877-8698
Email: wfdcusto@ded.state.mo.us