Kirkwood Community College - Kirkwood Training & Outreach Services

Home > Kirkwood Training & Outreach Services > Funding Assistance > 260E Funds

Iowa Industrial New Jobs Training Program (260E)

In 1983, the Iowa General Assembly adopted the Iowa Industrial New Jobs Training Act, Iowa Code Chapter 260E. The purpose of the act was to provide an economic incentive to new or expanding businesses and industries in the state.

The state's community colleges implement this program with business and industries in their service areas. Locally, Kirkwood Community College is actively involved in the New Jobs Training program, helping to strengthen our area's economy.

Who is Eligible?

Businesses and industries eligible to participate in this program are engaged in interstate or intrastate commerce for the purpose of:

manufacturing, processing, or assembling products;
conducting research and development; or
providing services in interstate commerce

Retail, health, or professional services are excluded.

A business that closes or reduces its operation in one area of the state and relocates substantially the same operation to another part of the state does not qualify for the program. However, a business that expands in another area may qualify, if it does not close or substantially reduce its existing operation.

How does it work?

The New Jobs Training Act allows expanding businesses to finance training for new employees by diverting funds from two different sources: State withholding taxes and local property taxes.

Kirkwood, along with other community colleges in Iowa, has the ability to issue federally tax-exempt and taxable certificates on behalf of the business. Repayment comes through:

A portion of state withholding taxes on new employees' wages are diverted from the state to the community college
Local property tax receipts from the business' new capital investment are diverted through the creation of a tax increment financing (TIF) district.

Both of these funding sources involve moneys that would be paid in any event and are not additional taxes to the company.

Locally, proceeds from the sale of the certificates are held by Kirkwood until the actual training programs are completed. The company then is reimbursed after providing documentation of the actual training costs.

Valuable Program Services

The Iowa New Jobs Training Program provides a variety of valuable services, including:

Basic Adult Education
Job-related Instruction
Skills Assessment
Training Equipment, Materials and Supplies
Training Services of a Community College, or Another Educational Institution
Testing and Evaluation of Employees
Customized or General Instruction at a Training Facility selected by the employer
Reimbursement of training travel costs for employees
College Tuition, Books and Fees
Training Services of a Private Trainer

Iowa's Job Training Programs represent unique, cooperative efforts between government, business, and education. Companies receive the financing needed to train their employees, so that they can remain competitive in the marketplace. Funds generated by these programs are used to train Iowa workers and create added value to the quality of our state's workforce pool. After a maximum of 10 years, all funding sources are returned to the state and local governments in the form of increased withholding taxes and property tax receipts.

Agreement of Intent (PDF)
Application (PDF)

For more information, please contact Dee Baird at 319-398-5886 or dbaird@kirkwood.edu.