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Training Incentives

Skills Development Fund (administered by the Texas Workforce Commission)

The state-funded Skills Development Fund provides local customized training opportunities for Texas businesses and workers to increase skill levels and wages of the Texas workforce. Training providers can use grant funds for curriculum development, training materials, instructor certifications and training equipment additions or upgrades.  The employer will work in partnership with the local community college to develop a training plan for the Skills Development project.  The Texas Workforce Commission and local Workforce Board will also work with the employer and community college along the way to ensure the application requirements are completed.  If the grant is awarded, the Texas Workforce Commission will provide the funding to the community college, and the community college will administer the training program for the employer.  Total grant amounts vary, depending on the number of employees participating in the training.  Training dollars per employee range from $1500-$2000.

 

On-the-job Training (OJT) Contracts (administered by the local workforce Board)

OJT contracts from Workforce Solutions Northeast Texas are only available to an employer that hires an eligible job seeker.  OJT contracts pay up to 50% of an eligible employee’s wages during their training period.  OJT contracts are subject to funding availability. 

 

 

Work Opportunity Tax Credit (administered by the Department of Labor, but the local workforce office can help with the application process)

WOTC is a Federal tax credit available to employers who hire and retain veterans and individuals from other target groups with significant barriers to employment. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit, and there are a few simple steps to follow to apply for WOTC.  The tax credit employers can claim depends upon the target group of the individual hired, the wages paid to that individual in the first year of employment, and the number of hours that individual worked. There is also a maximum tax credit that can be earned. 

 

For the long-term Temporary Assistance for Needy Families (TANF) target group only, the credit is available to employers who hire members of this group for up to a two-year period.

·         In the first year, the employer may claim a tax credit equal to 40% of the first-year wages, up to the maximum tax credit, if the individual works at least 400 hours.

·         In the second year, the employer may claim a tax credit equal to 50% of the second-year wages, up to the maximum tax credit, if the individual works at least 400 hours.

 

For all other target groups, the credit is available to employers who hire members of these groups, based on the individual's hours worked and wages earned in the first year.

·         If the individual works at least 120 hours, the employer may claim a tax credit equal to 25% of the individual's first year wages, up to the maximum tax credit.

·         If the individual works at least 400 hours, the employer may claim a tax credit equal to 40% of the individual's first year wages, up to the maximum tax credit.