Sharpen YourCompetitive Edge

Community colleges administerthis program, commonlycalled the Iowa New JobsTraining Program. KirkwoodCommunity College, whichserves seven counties in easternIowa, finances your trainingprogram through the sale ofnew jobs training certificates.These certificates are issuedby Kirkwood as federally tax-exempt and taxable certificateson behalf of your business, butthe certificates are obligationsof Kirkwood and not of yourbusiness. The proceeds fromthe sale of the certificates areheld by Kirkwood and used toreimburse your company for thetraining expenses incurred onthe new jobs created. After your employeesare trained, you repay thecertificates by:1) Diverting a portion of statewithholding taxes on newemployees’ wages from thestate in the form of a new jobs credit (NJC) to KirkwoodCommunity College;

and/or

2) Providing local propertytax receipts from newcapital investments byyour business—which arediverted through the creationof a tax increment ﬁnancing(TIF) district. (Note: This iscontingent upon your localmunicipality’s consent andagreement.)Since both of these fundingsources involve monies that yourbusiness would pay in any event,they are not additional taxes.

How the Iowa New Jobs Training Program Works

You already know that to staycompetitive in today’s rapidlychanging global marketplace your business needs fullytrained employees. Butdid you know that if yourcompany is new or planningto expand employment in theState of Iowa, you can receiveﬁnancial help for training newemployees?The State of Iowa provideseconomic incentives toqualifying businesses throughthe Iowa Industrial New JobsTraining Act, Iowa CodeChapter 260E. The net resultis that your new employeeswill show higher productivity,improved morale and reducedturnover…and your companywill sharpen its competitiveedge.

Full Cycle

The Iowa New Job TrainingProgram represents unique,cooperative efforts betweengovernment, business andeducation. Companies receivethe ﬁnancing needed to traintheir employees, so that theycan remain competitive in themarketplace. Funds generatedby these programs are usedto train Iowa workers andcreate added value to thequality of our state’s workforcepool. After a maximum of 10 years, all funding sources arereturned to the state and localgovernment in the form ofincreased withholding taxesand property tax receipts.

Kirkwood Community Collegestaff will help you decide whatkind of training will work bestfor your employees and yourbusiness and also ﬁt in withthe legislation, program rulesand college policies. Thetraining that you implementmay ultimately be provided byKirkwood, another educationalinstitution or other third parties.Some employers utilizeon-the-job training, which is areimbursable expense as longas it does not exceed more than50% of the training fund. Usuallythis equates to 50% of the newemployee’s salary for about nineweeks.Other customized trainingservices may include:• Basic adult education• Job-related instruction,including moderately or highlyspecialized• Training equipment, materialsand supplies• Testing and evaluation ofemployees• Customized or generalinstruction at a training facilityselected by your business• Reimbursement of trainingtravel costs for employees• College tuition, books and fees• Training services of a privatetrainer

Types of Training Available

A History Lesson

The Iowa economy hashistorically been heavilybased on agribusiness, butsince the farm crisis of the1970s, state leaders havebeen encouraging economicdiversity by recruiting newcompanies and encouragingexisting companies to expand.In 1983, state legislatorsadopted the Iowa IndustrialNew Jobs Training Act,which continues to provideeconomic incentives for newor expanding businesses andindustries.

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Yes, if your business orindustry is engaged in interstateor intrastate commerce for thepurpose of:- manufacturing, processing orassembling products;- conducting research anddevelopment; or- providing services ininterstate commerce.• No, if your business is in retailor health or offers professionalservices.• No, if you close or reduce youroperation in one area of the stateand relocate substantially thesame operation to another partof the state.• Yes, if your business isexpanding in another area butyour existing business does notclose or substantially reduce itsexisting operation.

How Other Businesses Are Beneﬁting from theProgram

• One Eastern Iowa employersent 10 new project managers tosales training which took placeoutside the State of Iowa. Theemployer was reimbursed over$35,000 for the registration fees,travel and lodging expenses.• Many employers provide tuitionreimbursement as a beneﬁt totheir employees. One companyhas been reimbursed $20,000 forseveral new employees pursuingtheir MBA degrees.• A European company openeda new plant in eastern Iowa.The company contracted withKirkwood Training Services toinitiate the hiring process, write job descriptions and screenapplicants. The new employeeswere sent to Europe for trainingprior to opening the new plantin Iowa. Many of their traveland lodging expenses werereimbursed under the program.

Clear Needfor Training

The Cedar Rapids/IowaCity Technology CorridorCommittee recently sponsoreda study of area businessesand their projected needsfor employment and skills.The Skills 2006 TechnologyCorridor Report revealeda common theme amonglocal employers: employeesneed training in essentialskills, such as team building,communication, customerservice and problem solving;and technical skills, such asmath, writing and computerapplications.