Now that the stimulus package has passed, many corporate executives are working to ensure their company benefits from the plan. Although not a part of the stimulus package, most every state offers incentive grant programs to provide corporations with funding to help retain and develop jobs within their jurisdiction. We tend to think of competition for jobs as a federal issue due to the growth of offshoring. But competition between states is real and ongoing. This is why state governments offer corporate incentives to provide training that attracts and retains jobs.
So why not let your state government help you reduce your training costs? State training incentive programs provide your company the opportunity to subsidize or reduce training costs if your training upgrades the skills of your employees, especially when your business is vulnerable to lost jobs to another state or country, or if the training is caused by economic changes that make the worker less employable if they are not re-trained to address the change.
Examples of the types of training programs state incentives target:
- New methodology training such as continuous improvement (kaizen events, value stream mapping, etc), six sigma, etc.
- New equipment training, whether in the office environment, factory, or research organization, etc.
- New technology training that helps the company become competitive in a new market, or to reduce costs to be more globally competitive
- Skills training to attract a company to re-locate in that state
To qualify for the funding, each state requires an application be completed, submitted and approved before the training begins. Once the state has approved the application and the training occurs, the state will require a reimbursement request form be submitted verifying the training occurred and its costs. States often reimburse up to 25-50% of the costs of new training initiatives that fall into the categories above.
So why aren’t more companies getting access to these funds?
2 reasons - First, working through government bureaucracy and processes are not easy. You must know the process and how to apply. Second, because most corporate training leaders do not know they exist. They don’t even apply.
These reasons are why there are advisory firms available to help you through the process. My experience has found that companies who use an advisory firm get much more funding than those who try to manage the process themselves. Advisory firms’ experience and expertise translates into a proven track record. They increase the probability of you getting the funding you deserve to over 90%. And they help make sure you get access to the maximum amount of money your company qualifies for.
Two firms I highly recommend are the IM Group and the Incentis Group. Links to their websites are below. I’ve also provided a sample of state websites that discuss the incentive programs. Take a look at these advisory groups and see what your state can do to help your company.
The IM Group: http://http://www.government-incentives.com/.
Incentis Group: http://www.incentisgroup.com/
Related Articles and Samples of State Programs:
www.governmentgrantlist.com
www.southfloridaworkforce.com/w/trainingIncentives.html
www.pascoedc.com/Business/Pasco-Taxes/State-Tax-Incentives.aspx
www.areadevelopment.com/taxesIncentives/feb08/trainingIncentives.shtml
If you would like your site listed here, please send me an email at dharward@trainingindustry.com.
