The 260E and 260F programs serve as funding mechanisms and incentives for companies to expand, hire, and train more workers.
The Iowa Industrial New Jobs Training Program (260E) was enacted by the Iowa Legislature in 1983 as a unique economic development and training tool to assist with expanding Iowa's manufacturing base. The 260E program is responsible, flexible, and decentralized, and allows a company to divert 1 1/2% of the gross payroll of new jobs/employees to pay for training activities. The payroll diversion is then subtracted from payroll taxes that are paid to the state by the company, resulting in a very cost-efficient incentive to provide for effective training of workers.
The 260F program, known as the Iowa Jobs Training Program, is most often used as a source for financial incentives to provide for the retraining of existing workers. While the 260F program has the capability to function like the 260E program, the source of funds comes from an annual allocation divided by the state on a formula basis through the 15 community colleges. Money awarded through the 260F program can either be a repayable loan or a forgivable loan depending on the amount of money involved.