Object Discovery Corporation

Training Funds For Expanding Companies

Iowa New Jobs Training Program (260E)

The Iowa New Jobs Training Program (260E) supports businesses adding employees through expansion in, or relocation to, Iowa. The flexible funding of the 260E program allows your company, in consultation with DBR experts, to implement an effective training plan for your new employees. The plan is designed to build the skills needed by your new employees to become productive.

The 260E program is of no cost to your business. Training is funded by DMACC through the sale of certificates for the amount of anticipated tax revenue generated from new employee salaries. The revenue generated from the certificate sale is used to establish a training fund for your company.

Your company will then use the funds in this account to pay for new employee training. The certificates are repaid by your business over a ten-year period by diverting a portion of your payroll taxes from the State of Iowa to DMACC. The amount diverted is based on the wages of new jobs your company has added. The dollar value of your training fund depends on your company's training and development needs and the projected tax revenue available to repay the certificates.

In other words, the program is free to your company.

    To be eligible for the 260E program, your business must currently be:
  • Creating new Iowa positions
  • Locating to or expanding in Iowa
  • Providing services in interstate commerce
  • Conducting business in manufacturing, processing, assembling products, or research and development

Supplemental Funding Opportunities

To promote the creation of high-quality jobs within Iowa, a supplemental withholding credit may be available to your company, increasing the size of your training program. Supplemental withholding credits are available for new positions with wage levels meeting or exceeding established criteria.

Other funding benefits that can supplement the Iowa New Jobs Training program include the corporate income tax credit and the Iowa New Jobs and Income Program. Your DBR consultant can provide you with additional information regarding these programs.

Contact Des Moines Area Community College regarding the state funding.

See additional information here.

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