260E Iowa New Jobs
Training Program
Overview
Growing business and strengthening Iowa’s
workforce is the goal of the Iowa New Jobs
Training Program, or 260E. If you need to hire
and train employees, 260E allows you to divert
state withholding taxes to accomplish these
goals.
Kirkwood is your partner in navigating 260E.
We will help you determine if you qualify.
Figure out how much you can spend on
training. Sell bonds to make training happen,
and provide training if needed.
To apply:
www.kirkwood.edu/ktos/260efunds
For more information visit:
www.iowaeconomicdevelopment.com/workforcetraining/employeetraining
260E Cultivating Business
Growing is synonymous to Iowa.
Going beyond the fields, the
state helps business grow with
the 260E program. The program
incentivizes companies to expand
their workforce by providing a
withholding tax credit which can
be used for training purposes.
260E
Planting the Seed
260E is an economic incentive program for business
expansion. The goal is to increase the number of skilled
workers in Iowa for a more productive and competitive
workforce.
Reaping the Benefits
Training employees makes them feel valued. Investing in
their professional development can improve morale and
reduce turnover. A valued employee tends to work harder.
Improved performance will impact your bottom line.
Co-operative
Iowa’s community college system encompasses the entire
state. Each serves a multi-county region therefore efficiently
administering 260E. Community colleges also offer
customized training, and career and technical certification
programs. Enrolled companies, however, are
not required to use training services offered through
community colleges.
260E Program Stages:
Projected Hires
Training Fund Estimated
➧
Company Hires and
Trains Employees
➧
Training Fund
Established
➧
Kirkwood
Sells Bonds
➧
6% of withholding
taxes paid to the
state of Iowa for all
employees.
1.5 or 3% withholding
tax employee’s wage
for 10 years, with the
percentage
dependent on the salary.
Agreement of Intent
Application
Preliminary Agreement
Final Agreement
Nonbinding
Nonbinding
Nonbinding
Binding
Bond Repaid
➧
3 or 4.5% withholding
taxes paid to the state
of Iowa for new jobs.
(1.5 or 3% withholding
tax employee’s wage
for 10 yrs.)
The percentage is
dependent on the
salary.
Withholding Paid
Reimbursement
Within 10 Years
Participating businesses may also be eligible for reimbursement up to 50 percent of the annual gross payroll costs
expended for on-the-job training, as well as a corporate tax credit if Iowa employment is increased by at least 10 percent.
Spend your tax dollars to grow your bottom line
with an increased, better-trained workforce.
An Example Bond Sale:
• 37 new jobs that qualify for 3% withholding equals a training fund of $202,500
• Company hires all 37 and provides training plus Bond Sale Expenses = $270,000
• $270,000 in bonds sold
• Company repays Kirkwood $270,000 within 10 years
Example Sale Expenses:
$13,500
Reserve Account
Amount set aside to make debt service payments.
$2,700
Issuance Cost
Covers fees for legal and financial.
$48,600
College Administrative Fees
Kirkwood receives 18.51% for 10 year program administration.
$2,700
State Administrative Fees
The state of Iowa receives 1% for 10 year program administration.
$202,500
Training Fund
(Amount used to train new employees.)
How the 260E Iowa New Jobs Training
Program is working in the
Creative Corridor.
“This is probably one of the most employer friendly sources
that I’ve ever seen. I think the impetus behind the program
is you grow your business and that grows our ability as a
state to do things. I think they’ve made it relatively painless for
organizations in the state to utilize that funding source.”
Civco Medical Solutions
Manufacturer of medical devices and infection control covers
• 55 jobs created
• 25% of total workforce better trained
• $200,000 training dollars
“It incented us to be able to provide better training to our
employees, which makes you have a better employee base
where they feel like they have career development. As a start up,
it gave us funding that we would have normally not had right
away since we’re not a company that’s been in business for 20
years and has all of these dollars sitting there. And it allowed
us to probably grow faster and hire more people as well. So,
all around, it was a fantastic program for us.”
ImOn Communications
Internet, cable TV, and phone service provider
• 19 jobs created
• $100,000 training dollars
“Retention. When you train people properly, they like their
jobs better and stay with you longer. It also helps us get things
done more efficiently, too, obviously, once they know what
they’re doing. We send many employees to a lease equipment
finance conference because they learn a lot there about leasing,
so, we’re able to send them with the training funds.”
GreatAmerica Financial Services Corp.
Provider of commercial equipment and technology financing
• 24 jobs created
• 40% of total workforce better trained
• $150,000 training dollars