New Program Provides Employers with Tax Credits to Train Employees and Upgrade Workers’ Skills
Governor Cuomo announced the launch of the Employee Training Incentive Program, a new program that will incentivize New York State employers to provide skills training for their employees that upgrades, retrains or improves the productivity of their workforce, by providing tax credits to help offset the cost of trainings.
“It is critically important that we align workforce training with tomorrow’s industry needs,” Governor Cuomo said. “By incentivizing employers to bolster their workforce training programs, we are laying the groundwork for future economic prosperity in New York today.”
Empire State Development President, CEO & Commissioner Howard Zemsky said: “New York State’s economy depends on its most significant resource: a diverse and talented workforce that is second to none. This new program will help support businesses across the state in their efforts to strengthen their employees by providing them with the opportunity to advance their skills while also creating new jobs in the process. Our workers deserve every opportunity to enrich and grow their skills, as they continue to contribute to and produce a robust and vibrant economy.”
The Employee Training Incentive Program (EITP), which was proposed by the Governor in his 2015-16 Executive Budget, will make $5 million in tax credits available to businesses annually, with up to $1 million in credits available for approved internship programs. Tax credits will be awarded for costs associated with eligible training programs for current and new employees or for internship programs for current students, recent graduates, and recent members of the armed forces, and are issued after training is completed.
Training grants are also available through the Department of Labor to encourage the hiring of workers, enabling them to upgrade their skills and obtain employment. The grants can be used for on-the-job, apprenticeship or customized training, depending on the individual needs of the employer.
Acting State Labor Commissioner Roberta Reardon said, "Since he took office, Governor Cuomo has prioritized saving businesses money through no-cost services, access to training funds and tax credits. The Employee Training Incentive Program will be another powerful tool to help businesses retain talented workers and recruit and train new ones."
Eligible businesses must create at least 10 new jobs or make a significant capital investment of at least $1 million in connection with the eligible training project, in addition to demonstrating that it is operating predominantly in a strategic industry based upon the following criteria:
- Potential to create jobs in an economically distressed area;
- Shortages of workers trained to work in that industry;
- Ability and need to relocate to another state to find qualified workers;
- Potential to recruit minorities and women to be trained to work in an industry where they are traditionally underrepresented; and
- Recent technological advances have created disruption in the industry and significant capital investment is needed to remain competitive.
An eligible internship program must provide training in advanced technology, specifically in the areas of advanced materials and processing technologies, integrated electronics, optics, biotechnology, information and communication technologies, automation and robotics, electronics packaging, imaging technology, and remanufacturing. Internship training can be provided by the business or by an approved provider.
A business must submit an initial application for approval prior to obtaining eligible training or retaining interns. Applicants must demonstrate that the training provider has suitable experience and expertise specific to the particular skillset being sought. Applicants must complete a Consolidated Funding Application (CFA) that will be submitted to the local ESD regional office. The CFA can be accessed at http://apps.cio.ny.gov/apps/cfa/index.cfm. Enrollment will remain open, and applications will be accepted on a rolling basis up to the total program allocation.