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Solving Barriers to Employment


TEXAS SKILLS DEVELOPMENT FUND

The Skills Development Fund is a program designed to help Texas public community and technical colleges and a higher education extension agency finance customized job training for their local businesses. The Fund will respond to the needs of businesses, help create new jobs through business expansion or relocation, and continue to help the creation of a competitive and trained Texas workforce. The Legislature appropriated $25 million for fiscal 1998 and 1999.

Eligible Employer
Businesses and labor unions who form partnerships with local community colleges and technical schools or the higher education extension agency may apply. They should have a training plan and jobs, which pay the occupational wage in their local area.

For more information, contact The Education and Workforce Division at (915) 534-0500.

TAX CREDITS

Federal tax credits are available to employers who hire new workers from targeted groups of job seekers. These tax credits are designed to help move people from welfare to work.

Work Opportunity Tax Credit (WOTC)
WOTC- is authorized by the Small Business Job Protection Act of 1996. The reauthorize WOTC is a federal income tax credit for qualified new hires who began work between July 1, 1999 and December 31, 2001.

It was designed to encourage employers to hire target groups of job seekers with barriers to employment. Targeted groups include:
  • Qualified TANF Recipients
  • Veterans
  • Ex-Felons
  • High Risk and Summer Youth
  • SSI Recipients
  • Food Stamp Recipients
  • Vocational Rehabilitation Referrals.
Benefits
The maximum credit availability per eligible adult worker is $2,400. The credit is based on 40% of up to $6,000 in wages the first year of employment for employees who work at least 400 hours in the 1st year.

Summer Youth qualify for a 40% credit of the first $3,000 in wages during the required working period.

Welfare to Work Tax Credit (WtW)
WtW Tax Credit- authorized through the Taxpayer Relief Act of 1997. It is a federal income tax credit designed to encourage employers to heir long-term welfare recipients.
Qualified TANF family members include:
  • AFDC/TANF recipients for at least 18 consecutive months before hire date or
  • TANF expired under federal or state law after August 5, 1997 or
  • Received AFDC/TANF for at least 18 months beginning after August 5, 1997.
Benefits
The WtW Tax Credit reauthorization applies to qualified new hires who began work between July 1, 1999 and December 31, 2001. Employers of qualified new hires that have been employed for 400 + hours or 180 days may obtain the credit for 355 of qualified wages for the 1st year of employment and 50% for the 2nd year. Qualified wages are capped at $10,000 per year.

NO “DOUBLE DIPPING” ALLOWED
Some new hires qualify employers for both the WOTC and the WtW Tax Credit. Employers may only choose one of the tax credits each year.


Adult Bilingual Curriculum Institute, The Workforce Development & Education Division is to provide oversight to the ABCI program/grant in the development of an integrated adult curriculum that meets the training needs of the employer and the language skills of the monolingual Spanish speaking client. To guide instructor professional development ensuring effective and efficient delivery of adult bilingual instruction. For more information please contact The Workforce Development Division @ (915) 595-1144.

For information regarding state labor law contact the Employer Services Unit of Texas Workforce Commission at (915) 633-6617.

For information regarding federal labor law including FMLA contact U. S. Department of Labor at (915) 534-6426.

For information regarding discrimination issues contact Equal Employment Opportunity Commission at (915) 832-4001.

For information regarding work-related employee injuries contact Texas Worker's Compensation Commission at (915) 757-8081.

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