Workforce Development Programs
Employment Training Investment Program (ETIP)
Administering Agency: Illinois Department of Commerce & Economic Opportunity (IL DCEO)
Type of Benefits: Training Grant
Description of Benefits:
The ETIP program is designed to assist Illinois companies with upgrading the skills of their workforces to meet the changing demands of new processes and technologies.
Allowable Use of Benefits:
ETIP reimburses individual or multiple companies for up to 50% of approved training costs. The actual percentage is determined by the IL DCEO based on a number of factors including wage level of trained employees, capital investment related to the project, whether the company is headquartered in Illinois, etc. Typically, the amount approved has ranged from $250 to $750 per employee.
Eligibility:
Grants may be awarded to individual businesses, intermediary organizations operating multi-company training projects and original equipment manufacturers sponsoring training projects for employees of their Illinois supplier companies. Companies are eligible to apply if they are:
- Expanding in Illinois
- Expanding into new markets
- Introducing new technologies or systems which improve output per employee
- Training full-time Illinois employees (part-time, temporary, or seasonal workers are not eligible)
- Expanding exports from Illinois
- Providing additional training to employees who will be threatened with layoffs.
Ineligible occupations include retail and sales.
For more information: Employer Training Investment Program
Incumbent Worker Training (IWT) Program
Administering Agency: Henry, Mercer and Rock Island County Workforce Investment Board
Type of Benefits: Grant
Description of Benefits:
The Incumbent Worker Training Program helps employers upgrade the skills of their workforces in order to become and remain competitive in both regional and global markets. IWT is therefore “employer driven” and responds to changes in market conditions as well as the introduction of new technology into the workplace. The employer is the primary customer and primary beneficiary of the training.
Allowable Use of Benefits:
Funds can be used for training programs that upgrades skills directly linked as well as skill training leading to specific job advancement. Proposed training that is only loosely related, or is unrelated to specific jobs is not appropriate for this grant source.
Eligibility:
Companies within target industries are invited to apply. These industries include healthcare; manufacturing; information technology; agri-business; transportation, warehousing, and logistics; hospitality and retail industries; finance and insurance, green industries and occupations.
Training must be designed to meet the requirements of the business or a group of businesses and is to be conducted with an employer commitment to continue to employ all trained individuals. Training should be closely linked to high growth jobs in one of the identified targeted industries, and career/job advancement is desired.
Allowable training expenses include the following:
- Training development;
- Instructor wages;
- Tuition;
- Training materials and supplies;
- Fees required to complete training;
- Travel for trainers and trainees beyond normal commute;
- Training facility costs (off-site);
- Training facility costs (on-site);
- Cost for use of firm’s equipment during training;
- Wages of trainees while in training (matching costs only)
- Fringe benefits of trainees while in training (matching costs only); or
- Fees for technical or professional certifications.
This program requires a match from the company to secure grant funding:
| Number of Employees | Company Match % | Grant % |
| 50 or fewer full-time employees | 10% | 90% |
| 51-99 full-time employees | 25% | 75% |
| 100+ full-time employees | 50% | 50% |
For more information: Incumbent Worker Training Program (IWT)
Work Opportunity Credit
Administering Agency: Illinois Department of Employment Security (IDES)
Type of Benefits: Tax Credit
Description of Benefits:
The Work Opportunity Tax Credit program helps Illinois employers hire from historically disadvantage groups. This federal program provides employers a federal tax credit of as much as $2,400 per newly-hired workers from one of eight targeted groups.
Allowable Use of Benefits:
The tax credit applies to new employees that belong to one of the following eight groups:
- Member of a family who received family welfare for 9 of the 18 months before the date of hire;
- Youths age 18-39 from families receiving food stamp assistance;
- U. S. Veterans receiving food stamp assistance;
- Vocational rehabilitation referrals;
- 18-24 years olds living in Enterprise Communities or Empowerment Zones;
- Summer employees, 16 or 17 years old, living in one of the same special areas;
- Ex-felons who are hired within one year from date of conviction or date released from prison;
- Supplemental Security Income recipients.
Eligibility:
All companies are eligible.
For more information: Tax Credits, Incentives, and Other Employer Assistance Programs
Welfare-to-Work Opportunity Credit
Administering Agency: Illinois Department of Employment Security (IDES)
Type of Benefits: Tax Credit
Description of Benefits:
The Welfare-to-Work Tax Credit is a federal program that encourages employers to hire long-term family assistance recipients. Employers who hire from this pool of workers can reduce their federal tax liability by up to $8,500 per employee.
Allowable Use of Benefits:
The tax credit can apply if a company hires from one of the following categories:
- Member of a family who received family welfare for at least 18 consecutive months before the date of hire;
- Member of a family whose family welfare eligibility expired under federal or state law after August 5, 1997;
- Member of a family who received family welfare for at least 18 months after August 5, 1997.
Eligibility:
All companies. The credit for new hires is 35% of qualified wages for the first year of employment and 50% for the second year. Qualified wages are capped at $10,000 per year.
For more information: Welfare-to-Work Opportunity Credit