Introduction 

In today's competitive business landscape, employers are constantly seeking innovative ways to attract and retain top talent while enhancing their operational efficiency. Fortunately, for employers in Kentucky, there exists a valuable resource in the form of the Grant-In-Aid (GIA) and Skills Training Investment Credit (STIC) programs. If you train employees as a Kentucky employer, you can benefit!  

Understanding the Grant-In-Aid Program: 

The Grant-In-Aid program aims to support employers that are investing in training their workforce. Through this program, eligible employers can receive funding for job training costs – such as the salaries or wages paid to employees while in training. Also, costs associated with training offered through a third party, material/supplies, and salaries of internal instructors are covered at a rate of 50% of the costs – for most expenses.  

Key Benefits for Employers: 

1. Financial Support: One of the primary advantages of the Grant-In-Aid program is its financial assistance. Employers can receive funds to cover a significant portion of their training expenses, making it more feasible to invest in employee training initiatives. 

2. Customized Training Solutions: Every business has unique needs, and the Grant-In-Aid program recognizes this fact by offering customized training solutions. Employers have the flexibility to design training programs tailored to their specific industry, workforce, and objectives.  Whether your training is very simple, on the job, or highly complex – you can benefit.  

The Grant in Aid Program (GIA)  is a cash benefit.  This is attractive for employers because you will receive a check from the state.  

Understanding the STIC Program: 

In addition to the Grant-In-Aid program, Kentucky offers the Skills Training Investment Credit (STIC) program to further incentivize employer investment in workforce development. This program provides tax credits to eligible employers that invest in training their Kentucky employees. 

Key Benefits of the STIC Program: 

1. Tax Incentives: The STIC program offers tax credits to offset the costs associated with training expenditures. Employers can claim a credit against their Kentucky income tax liability based on a percentage of the approved training expenses. 

2. Flexibility in Training Options: Similar to the Grant-In-Aid program, the STIC program provides employers with a financial benefit to offset training costs.  Whether it's on-the-job training, classroom instruction, or online courses, employers can select the most effective training methods for their workforce and receive this state financial benefit.  

3. Support for Innovation and Growth: By incentivizing employer investment in training and development, the STIC program contributes to encouragement to train your workforce.  If you knew the state would offset training costs, salaries/wages, and other expenses, would you broaden your organization’s training opportunities?  The state of Kentucky hopes so by offering these training grants and credits.  

Conclusion 

Kentucky's GIA and STIC programs serve as valuable resources for employers looking to invest in their workforce.  It is important to note that your benefit is for the training of existing employees as well as new hires.  By providing financial assistance, these programs empower employers to enhance the skills and capabilities of their employees.  If you train your employees in Kentucky, there is no reason not to apply.  

We Are Here to Help 

Our firm, EIAG, has managed the GIA and STIC programs for over 12 years.  We manage training grant and credit programs nationally and can share that Kentucky has one of the most efficient and financially rewarding programs in the country.  Very simply stated, if you training your employees in Kentucky, you should apply to recapture the wages you pay employees while in training. Please reach out to one of our Kentucky Incentive Specialists to discuss application due dates.