Employment Related Incentives

The following is a description of employment training programs which may be of value to your company:

Job Training Partnership Act Programs (JTPA)

JTPA programs offer financial incentives to employers for hiring and training low-income and unemployed people. The programs are federally funded and locally planned and operated.

Funds are available to pay for specialized classroom training of the employer’s choice or to reimburse an employer up to 50% of wages paid for a specified period, up to six months, of on-the-job training.

Besides customized classroom and on-the-job training, the Job Training Partnership Act offers a variety of other services, including vocational evaluation and assessment.

Work Opportunity Tax Credit

Targeted Jobs Tax Credit provides an incentive to employers to hire persons from targeted groups that have a particularly high unemployment rate or other special employment needs. There is no limit on the number of eligible people who may be hired or on the number of times an employer may claim the tax credit.

Employers receive a federal tax credit of as much $2,400 for each new adult hire; $1,200 for each new summer youth hire; and $9,000 for each new long-term family assistance recipient hired over a two-year period.

Minnesota Job Skills Partnership

Provides State grants to educational institutions for the development of training programs that meet specific business needs. To act as a catalyst between business and education in developing cooperative training projects that provide training for new jobs or retrain existing employees. Grants are awarded to educational institutions with businesses as partners. Funds may be used for educational infrastructure improvements necessary to support businesses located or intending to locate in Minnesota.

Minnesota Job Creation Fund

The program is available to businesses engaged in manufacturing, warehousing, distribution, technology-related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.

To be designated as a Job Creation Fund business, a business must, at minimum:

  • Be engaged in an eligible business activity
  • Obtain local government support for their project via council resolution
  • Invest at least $500,000 ($250,000 for Targeted Populations*) in real property improvements within one year of becoming a designated Job Creation Fund business
  • Create at least 10 (5 for Targeted Populations*) new full-time permanent jobs within two years of becoming a Job Creation Fund business while maintaining existing employment numbers
  • Pay at least $13.61 in wages and benefits in 2020, adjusted annually based on 110 percent of federal poverty guidelines. The level will change again on Jan. 1, 2021.
  • Have other location options outside of Minnesota
  • Cause no undue harm to Minnesota business competitors
  • Certify that the project would not occur without Job Creation Fund assistance

Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation Fund.

Minnesota Investment Fund

Funds are awarded to local units of government who provide loans to assist expanding businesses. Cities, counties, townships, certain development authorities and recognized Indian tribal governments are eligible for this fund. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. At least 50 percent of total project costs must be privately financed through owner equity and other lending sources (most applications selected for funding have at least 70 percent private financing).

Term Fees Interest
1 to 3 years n/a n/a
Interest Type Amount Eligibility / Requirements
n/a Up to $400,000 All projects must have at least one educational institution and one business working together. Costs are paid on a reimbursement basis.