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Adding to Your Workforce? Check Out These Grants, Tax Credits Available for Job Creation

Posted by Andrea Brady on Thu, Feb 9, 2017

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mfg emblem-TAX BENEFITS copy.pngJob creation in itself provides many upsides for manufacturers. It’s usually undertaken when business is booming. It increases productivity and provides more local employment.

But there’s another big upside for job creation available to Lehigh Valley manufacturers – money. The federal, state and local governments all offer funding expressly for job creation in the form of grants and tax credits.

And there are also grants and other funding available to Lehigh Valley manufacturers to train those new employees.

For manufacturers to be competitive and profitable, they need to take advantage of all available resources. By taking advantage of grants and tax credits, you’ll have more money to invest in your company’s growth.

Check out these job creation grants and tax credits your company may be able to obtain:

Job Creation

U.S. Work Opportunity Tax Credits:  WOTC is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Target groups include qualified veterans, long-term or short-term TANF recipients, food stamp recipients, employees living in empowerment zones, ex-felons and the long-term unemployed.

The maximum credits range from $2,400 for the general target groups all the way to $10,000 for certain qualified veterans and Welfare-to-Work employees.

Pennsylvania First Grants: These grants generally pay $1,000 per every one job created. The grant funding can be used for various purposes, including land and building improvements, new equipment and job training.

The Lehigh Valley Economic Development Corp. can help local manufacturers receive Pennsylvania First grants for creating new jobs. The Pennsylvania Governor’s Action Team can serve as an even strong advocate for companies seeking Pennsylvania First job creation grants, though it only can work with companies creating 25 or more new jobs.

Lehigh Valley Manufacturers' Guide for Growth Pennsylvania Job Creation Tax Credits: Pennsylvania offers Job Creation Tax Credits worth $1,000 per new job, which LVEDC also can help local manufacturers obtain. The Governor’s Action Team can often get higher amounts in Job Creation Tax Credits than the standard $1,000 per new job.

Northampton County Job Creation Grants: Northampton County offers up to $50,000 in grants for the creation of living-wage jobs (a base hourly wage of $19.18 an hour plus 50% of benefits provided). Between $5,000 and $10,000 is offered per job.

READ MORE: Tax Tips for Manufacturers Seeking Increased Cash Flow

Employee Training Funding

WEDnetPA Grant: The Workforce and Economic Development Network of Pennsylvania Grant is available through Northampton and Lehigh Carbon community colleges. Companies can qualify for up to $450 per employee for basic skills and up to $850 per employee for advanced skills. Companies can receive the grant two years in a row. The Manufacturers Resource Center can help manufacturers obtain this grant.

Incumbent Worker Training Grant: The Incumbent Worker Training Grant is available through the Lehigh Valley Workforce Investment Board. It can be used to pay for up to 50% of employee training, but it has to be third-party – not in-house – training. The Manufacturers Resource Center can help manufacturers obtain this grant.

On-The-Job Training Funding: PA CareerLink Lehigh Valley offers companies hiring resources through On-the-Job Training (OJT) to help defray costs of the initial training period of eligible new hires. The funding can reimburse companies between 50 to 90% of full-time employees’ wages during the initial training period, depending on program parameters and funding availability. There also is separate OJT funding for hiring qualified new employees with disabilities.

The organization also works with employers to pursue Work Opportunity Tax Credits for hiring individuals from targeted groups, including veterans, Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP) recipients, ex-offenders, vocational rehabilitation referrals and others.

How to Apply

Concannon Miller is personally acquainted with the key personnel at these organizations and can help you navigate with various agencies and programs to determine the route for maximizing your opportunities to get your business on the path for greater success. Many of these organizations provide manufacturers with free or discounted assistance. Contact us here for more information.

Looking for more grant and tax credit opportunities? Check out our Lehigh Valley Manufacturers’ Guide for Growth, which offers details on more than 30 tax strategies, grants, credits, low-interest loans and other business resources to help manufacturers grow. Download your copy here.

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Topics: Manufacturing

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

This communication is designed to provide accurate and authoritative information in regard to the subject matter covered. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

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