Job Training Incentive Program

The New Mexico Job Training Incentive Program (JTIP) is one of the strongest workforce training programs in the nation. Since 1972, this highly flexible program has provided classroom and on-the-job training for new hires. Step Up is a new reimbursement program to cover the costs of additional training of existing employees for New Mexico manufacturers and service businesses that derive at least 50% of their revenue out-of-state. The JTIP program: 

• Provides customized training by New Mexico post-secondary educational institutions or company trainers.
• Requires companies to submit a proposal to the JTIP board.

Reimbursement Details:

• 50% of trainees' wages up to 1,040 hours/trainee in urban areas (population greater than 40,000).
• 60%-75% of trainees' wages up to 1,040 hours/trainee in rural areas and on tribal land.
• An additional 5% of trainee wages for approved jobs that meet High Wage Job Tax Credit wage guidelines.
• 100% of instructional costs provided by New Mexico accredited post-secondary educational institutions, such as community colleges and four-year colleges.
• Partial reimbursement for travel and per diem required of trainees or company trainers up to 5% of trainee wage reimbursement.

Conditions:

Eligible businesses are:

• Manufacturers
• Service exporters who derive 50% of their revenue from sales outside of New Mexico
• Warehouse and distribution operations with 50% of revenues from sales outside of New Mexico.

And must be adding net new jobs.

• Businesses new to New Mexico qualify.
• Existing businesses qualify if new jobs represent an increase over the average previous three-year employee count.
• Previous JTIP recipients qualify if new jobs represent an increase over the highest employment level achieved under the previous JTIP contract.
• The recapture clause would deny claims for any company that closed its doors within one year of training employees.
  

Trainee eligibility:

• Participants must have been a New Mexico resident for one continuous year at any time prior to hire.
• Trainees must be guaranteed full-time year-around employment upon successful completion of training.
• Production and technical jobs to support production (e.g., computer programmers, engineers, software developers, production and front line managers) qualify.
• For each funding request, a maximum of 10% of qualifying jobs may be administrative (e.g., senior managers, accounting, marketing and secretarial).
• “Temp to perm' jobs qualify provided:
• trainee becomes a full-time employee of the company prior to the end of approved training period; and
• trainee working through temp agency must receive comparable medical, dental and vision benefits as full-time employee of the company.
• JTIP will only reimburse a portion of the wage paid to the trainee by the temporary agency, not the agency fees.
• Initial funding request must include the number of trainees to be hired within the first four months. Allocation for those not hired during this period will be returned to the JTIP fund. Employees must complete the entire training program before reimbursement.
• Companies can apply for subsequent contracts if they can demonstrate an expansion beyond peak employment as established in the prior application.
• In urban areas, companies hiring more than 20 people must offer health insurance and subsidize at least 50% of the premium for employees.
• Retraining does not qualify for assistance.

Proposal Details

Companies must submit a proposal for funding to the New Mexico Economic Development Department's JTIP division. Proposals are considered by the JTIP board at monthly meetings.

• Application is made to the Job Training Incentive Board and funding is subject to availability.
• Initial funding request must include the number of trainees to be hired within the first four months. Allocation for those not hired during this period will be returned to the JTIP fund.
• Employee must complete entire training program before reimbursement.
• Proof of actual training hours will be required.
• Companies can apply for subsequent contracts if they can demonstrate an expansion beyond peak employment as established in the prior application.

The maximum wage reimbursement is tied to hours required to learn the job and the hourly wage. The Job Training Incentive Board uses Job Zones as outlined by the federal Department of Labor's O-Net and the JTIP Wage Table to determine the maximum allowable training hours for a position.

2007-08 Job Training Incentive Program Wage Table for New Mexico

For more information or an analysis of tax incentives for your company,
call 800-226-2935 or email us .

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