Ohio Incumbent Workforce Training Program – Round Four Roll Out Soon
Published on by Emily Hinton in Tax Services
The Ohio Incumbent Workforce Training Program is an employer driven program designed to provide direct financial assistance to train workers and improve the economic competitiveness of Ohio’s employers. The ultimate goal of this program is to allow employees to retain and grow their existing Ohio workforce and create a statewide workforce that can meet the present and future demands in this changing economy. Eligible employers must demonstrate that the program will not only obtain a skilled workforce, but that it will also improve their company processes.
The program is operated as a reimbursement program and the Ohio Development Services Agency will currently reimburse the employer for up to 50% of the cost of the training after the employer pays the full cost of the training and the employee successfully completes the training. The program is capped at $4,000 per employee or $250,000 per employer, per fiscal year. However, the funding for the round four is expected to be around one third of the previous year’s funding. In other words: you need to act fast to take advantage of this program!
The funding for this program is on a first-come-first-served basis. The previous year’s funds were reserved in less than three minutes (no, that’s not a typo). The program is scheduled to be rolled out in September 2015. The exact day is yet to be determined, but historically, applications should be ready to be submitted by 10:00 A.M. ET on the go-live date.
To be eligible for this program, the employer must operate as a for-profit entity in a state-designated targeted industry, with a facility located in Ohio that has been in continuous operation for the 12 months prior to the submitting of the application.
Targeted industries include:
- Advanced manufacturing
- Aerospace and aviation
- Back office
- Corporate headquarters
- Financial services
- Food processing
- Information technology and services logistic,
- Polymers and chemicals
- Research and development
There is also an exception for “corporate headquarters” for all other entities not included in the targeted industries list.
An eligibility requirement for employees also exists. The employee must be someone who is directly employed by the company at a facility in Ohio. Additionally, the employee must be employed in production, back office operations, information technology, logistics, or research and development. The employee must earn an hourly wage of at least 150% of the federal minimum wage plus benefits, be an Ohio resident, be at least 18 years old, and work at least 25 hours per week.
For questions regarding the Ohio Incumbent Workforce Training Program, the round four rollout, or how you can best utilize this credit in your business, have a Barnes Dennig tax specialist reach out to you here.