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How to Make Training Incentives Work for Your Business

TrainingTraining is an essential part of a company’s growth, development and overall success.  The effectiveness of a company’s training programs – whether it’s orienting new employees or providing ongoing training for incumbent employees – can have a significant impact on the company’s bottom line for years to come.

Depending on what industry the company comes from and required materials, training expenses can add up fast.  Fortunately, many states offer a variety of training incentives that can help certain businesses offset some of those costs.

It‘s often in a state’s best interest to offer such incentives because it can lead to increased economic growth and higher employment and job creation rates. Once created, new incentive programs are typically revised regularly.

Thus, it may be wise for businesses to periodically check up on current or upcoming training incentives that are available and applicable to them in their respective states.

When should your business start looking into training incentives?

There are many different types of training incentives currently offered by states.  However, it is important to be aware of the various scenarios where your business may be eligible to take advantage of them.

Here are two common situations in which your business may be eligible for training incentives:

  • Your business is looking to implement some new technology, make upgrades and/or implement a new process (overhauling methods of operation, etc.).
  • Your business is going through a hiring boom or overall expansion.

If there’s any situation in which your business is undergoing a change that could stimulate economic growth or job creation for your business locality, it may be worthwhile to investigate your company’s eligibility for training incentives.

General categories of training incentives

So, what do training incentives typically look like and what types of training incentives are currently out there for eligible businesses?

States offer unique and various training incentives or incentive programs specific to their respective economic needs.  They can come in various formats, such as tax credits, grants, or cash reimbursements. Several common types include:

  • Reimbursement of a percentage of overall training expenses (usually including cost of materials, instruction, employee wages during training, etc.).
  • Reimbursement of qualified expenses per each person trained.
  • Fixed fee reimbursement based on qualifying training hours delivered.

Specific examples of incentive programs

Below are specific examples that can provide insight into the potential benefits of having a training incentive program for your business:

Getting started

While there are many training incentives available, it’s important to know which options your business may be eligible for before finalizing any significant changes.

State government or commerce websites, such as the specific examples listed above, will generally outline the particular eligibility requirements for each incentive as well as the application process involved.

In addition, it may be helpful for your business to seek out the support or advice of a human resources or training services company to help you maximize the potential benefit from all applicable incentives.

These valuable incentives could be the difference your business needs to afford the cost of improving or expanding the skills of your workforce to stay competitive in your industry.

 

Learn More About ADP SmartCompliance® Tax Credits

 


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