Industrial New Jobs Training (260E) program

Topics:

Business Engagement

HELPING IOWA BUSINESSES PROVIDE TRAINING OPPORTUNITIES FOR NEW JOBS

The Iowa Industrial New Jobs Training (260E) program assists businesses creating new positions with new employee training. Eligible businesses may be new to Iowa, expanding the Iowa workforce or relocating to the state.

Administered by Iowa's 15 community colleges and financed through bonds sold by the colleges.
Depending upon the number of new jobs pledged and the starting wages for the new jobs, an award amount is calculated and a training plan developed.
The award amount is paid back and bonds retired by the business diverting 1.5% or 3% (dependent upon wage thresholds) of gross payroll, from the Iowa state withholding taxes generated by the new positions.
Training is available at essentially no cost since bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes.
Participants may be eligible for reimbursement up to 50% of the approved award amount for on-the-job training.
Participants may also be eligible for a corporate new jobs tax credit if the company’s existing Iowa employee base is increased by at least 10%.

NEW JOBS TAX CREDIT

260E participants can visit this page for more information on the New Jobs Tax Credit, which is eligible to participants who enter an agreement and also expand its Iowa employment base by 10% or more.

WHO QUALIFIES

Must be located in, or relocating to Iowa.
Must be engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling, or conducting research and development.
Service-providing businesses must have customers outside of Iowa.
Cannot have closed or substantially reduced its employment base at any of its other business sites in Iowa in order to relocate substantially the same operation to another area of the state.
To qualify for training services, employees:
- Must be employed in newly created positions.
- Must pay Iowa withholding tax.
- Must occupy positions that did not exist six months prior to the date that the business and community college agreed to pursue a training project.