New Jobs Training Program
Provides assistance in reducing the cost associated with expanding a workforce or locating a new facility in the state of Missouri through training services:
Sections 178.892 to 178.896 RSMo (2004)
Regulations: 4 CSR 195-3.010
An eligible project may be located anywhere within the state of Missouri.
Businesses with a sound credit rating currently located in or locating to Missouri that are creating a substantial number of new jobs in Missouri by locating a new facility or expanding an existing workforce in Missouri.
Businesses applying must be:
engaged in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products;
conducting research and development; or
providing services in interstate commerce.
Retail businesses do not qualify for the program.
Other eligibility criteria may apply, such as types of jobs, type of industry and wage rates.
PROGRAM BENEFITS/ELIGIBLE USES
The community colleges located in twelve districts in Missouri, in cooperation with the Missouri Department of Economic Development’s Division of Workforce Development, administer the program. Funds for training and project costs are generated by using tax credits from the employer’s regular withholding taxes that are paid for the employees in the created jobs. The amount paid is based on a percentage of the gross wages that have been paid to the employees. The tax withholding is equal to 2.5% of gross wages for the first 100 jobs, and 1.5% for the remaining jobs in the project. The tax withholding credits for the project are claimed for an average of 4 to 6 years to pay for project costs.
Training assistance can include skill assessments, pre-employment training, instructor costs, curriculum development, travel and a variety of other training-related services. On-the-job training expenses are restricted to no more than 50% of a project’s training costs. Training may be provided by the company, a local educational agency or a training vendor.
Funding for this program is contingent upon the availability of funds. There is a limit on the total amount of outstanding project costs for all New Jobs Training Program projects. In addition, the amount of funds available each year is further controlled by the applicable appropriation.
The appropriate community college will submit a “Notice of Intent” for a potential project to the Division of Workforce Development. The Division will determine company eligibility and review 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 by the Division, the community college may enter into a formal contract agreement with the company. The community college board of trustees must approve all final project agreements.
Community college contacts may be obtained through the Division of Workforce Development’s Industry Training Unit at (800) 877-8698 or
e-mail at: firstname.lastname@example.org.
The community college will assist the company with documenting and submitting all reporting requirements for this program.
SPECIAL PROGRAM REQUIREMENTS
If applicable, union consultation is required.
This program is subject to “clawback” legislation. If any jobs for which training assistance has been received are moved out of Missouri or eliminated within five years of the date the project is approved, the company may be responsible for repayment of all training assistance received through the program. The Director of the Department of Economic Development has the authority and discretion to determine any exemptions from the repayment requirement.
Any proposed amount is an estimate based on the assumptions provided by the company. Any variation in the actual salaries or number of jobs created could affect the proposed amount and possibly invalidate the proposal. This summary is for guidance only and does not state complete program requirements. CONTACT
Missouri 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
Business and Community Services
301 W. High Street, Rooms 720, 770 Jefferson City, Missouri 65102
Tel: 800-523-1434 Fax: 573-751-7384 Email: email@example.com