While job creation is undertaken to boost a company’s productivity, it’s not without cost to the business.
But companies don’t have to bear the cost of new jobs on their own. The federal, state and local governments all offer funding expressly for job creation in the form of grants and tax credits.
And once your new employees start, there are also grants and other funding available to help train them.
For businesses 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 businesses 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.
Pennsylvania Job Creation Tax Credits: Pennsylvania offers Job Creation Tax Credits worth $1,000 per new job, which LVEDC also can help local businesses 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: The 10 Top Tax Benefits for Businesses
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.
PA CareerLink also offers Industry Partnership incumbent worker training funding to businesses within targeted industries as funding becomes available. Funding is currently available for diversified manufacturing, transportation, warehousing, and logistics companies.
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 businesses with free or discounted assistance. Contact us here for more information.
Looking for more grant and tax credit opportunities? Check out our Business Guide for Growth, which offers details on more than 40 tax strategies, grants, credits, low-interest loans and other business resources to help companies grow. Download your copy here.
