GSDC

Studies show the value of investing in employee training: skilled and happier employees lead to increased productivity and better business.  However, given today’s economic climate, companies may not have the financial means to provide for training.  On November 17 industry professionals gathered at Solo Cup to learn about government grants and incentives available to help build employee capacity.

Here’s the run-down:

TIFWorks is a City of Chicago grant program that funds workforce training costs in eligible TIF areas.  TIFWorks reimburses businesses up to 100% of training costs.  Training eligible for TIFWorks funding include: development & expansion of product lines; compliance to occupational regulations; and training that assists businesses in expanding to new markets.

Employer Training Investment Program (ETIP) is a state-funded program through the Illinois Department of Commerce & Economic Opportunity (DCEO) that supports Illinois workers’ efforts to upgrade skills to remain current in new technologies and business practices.  ETIP grants may reimburse Illinois companies for up to 50% of training costs.

On-the-Job Training (OJT) is a training reimbursement program through the US Department of Labor (DOL) that bridges skill gaps of new hires to perform new job duties.  Employer reimbursement rate can be 50 to 90 percent of participants’ hourly wage rate.  OJT is funded through the U.S. Workforce Investment Act (WIA) and the National Emergency Grants (NEG).

Tax credits and incentives are available for companies that hire qualified employees.  The Work Opportunity Tax Credit (WOTC) is a new hire tax credit for $2,400 to $4,800 per employee that falls within a designated target group.  The Federal Empowerment Zone Tax Credit entitles employers to $3,000 per employee that lives and works in a Federal Empowerment Zone.  Companies who hire qualified veterans may also be entitled to $2,400-$9,600 in tax credits.

Thanks to Rona Jeongco & Rosie Jimenez (City of Chicago), Arthur Nazario (Institute for Workforce Education), Tony Garritano (ManufacturingWorks) and John Hess (Retro Tax) for presenting.  Please contact Danielle Dai (773) 362-3379 for more info about the programs.