Foundation / Corporation
Arizona Commerce Authority (ACA)
Grants to Arizona employers to design and implement customized training plans. Eligible plans may be for employers creating new jobs or for increasing the skill and wage levels of current employees. Funding is intended to stimulate economic growth in the state.
Grants may be issued either for New Employee training or Incumbent
Employee training. New Employee training and Incumbent Employee training cannot be combined within the same grant. An Employer may have only one grant for each type of training at any point in time.
Generally speaking, allowable training expenses must relate to job skill instruction that upgrades specific employee skills either for an Employee's current job performance or an Employee’s performance following a job promotion.
Program grant funds may be paid to reimburse only allowable training expenses. The following are allowable training expenses:
a. Charges assessed by unaffiliated Qualified Training Providers;
b. Training material purchases and productions;
c. External training facility rental expenses not to exceed 25 percent of a total grant award;
d. Hourly wages of in-house Arizona Qualified Training Providers for allowable inhouse training;
e. On-The-Job Training costs not to exceed 25 percent of the base wage of an Employer's employee who provides On-The-Job Training to a registered apprentice under a grant;
f. Travel costs (exclusive of food and beverage) not to exceed five percent of a total grant award;
g. Other expenses that, in the Authority’s determination, comport with the intent of the Program with respect to the use of grant funds.
GrantWatch ID#: 176348
In respect to the November 28, 2018 round, the maximum grant award available will be $1.3 million per employer, up to $8,000 in eligible training costs per employee-trainee in the case of rural employers and employers with fewer than 100 employees and in the case of all other employers, up to $5,000 per employee-trainee.
The maximum term of awarded grants will be 12 months.
Subject to all additional requirements set forth in these Rules, an Employer or a Consortium is eligible for a Program grant if the Employer or each member of the Consortium:
1. Is registered with and participating in the federal E-verify program as required by A.R.S. § 23-214(B);
2. Pays Employee-trainees compensation as prescribed in Rules Section 2(b)(1); and
3. In the case of an application for Incumbent Employee training, at least 12 months have elapsed since completion of any prior Incumbent Employee training grant awarded the Employer.
Eligible Employees. Subject to all additional requirements of these Rules, Employees are eligible to be included in an Employer’s approved Training Plan if:
1. The average wage payable to all Employee-trainees throughout the term of the Training Plan is at least equal to the Qualifying Wage Rate as established as follows:
a. Employers in Maricopa or Pima Counties with 100 or more employees: 1.0 x County Median Wage
b. Employers in Maricopa or Pima Counties with 1 – 99 employees: 0.8 x County Median Wage
c. All Counties outside of Maricopa and Pima: 0.8 x Balance of State Median Wage
2. In the case of an application for New Employee training, the Employee-trainees are hired in employment positions qualifying as Net New Jobs after the date of submission of the Program grant application
"Employer" means an entity (and any one or more Affiliates) that:
a) Have at least one business location in Arizona;
b) Are not public agencies as defined under A.R.S. § 11-951; and
c) Are not public service corporations as defined under Arizona Constitution Article 15, Section 2.
Any reference in these Rules to the term “Employer” shall also include, as the context indicates, a Consortium that is awarded a Program grant.
The following, without limitation, are not allowable training expenses:
a. Any expense that is not incurred directly with an instructional cost;
b. Trainee wages or fringe benefits including tuition reimbursement;
c. Trainer fringe benefits;
d. Employer costs to complete a Program application or manage a Program grant;
e. Expenses for recruiting an Employee;
f. Training expenses for an Employer officer or partner, except for an Owner in the context of a Small Employer;
g. A signing bonus;
h. Food and beverage expenses;
i. Expenses for relocating an employee;
j. Professional Services;
k. Expenses for assessing the training needs of an Employer's employees;
l. Drug or other testing for employee screening or prescreening purposes;
m. Conference, online training, or seminar expenses not resulting in a Skill Certificate;
n. Trade show expenses;
o. On-The-Job training costs for an Employee that is not a registered apprentice;
p. Expenses associated with staff meetings that are not exclusively training sessions, or with onboarding activities, such as orientation classes;
q. Regulatory continuing education training required to retain an Employee’s certification or degree;
r. Training that is not specifically related to the requirements of the position for which training is provided;
s. Any expense that is not incurred and paid for directly by the Employer with the exception of travel costs paid by an Employee and reimbursed by the Employer; or
t. Training that is mandated by state or federal law.
The deadline for submitting substantially complete applications for this round is November 28, 2018.
Program grants are payable on a cost reimbursement basis. Grants cover up to 75 percent of the eligible costs for New Employee training and up to 50 percent of the eligible costs for Incumbent Employee training.
Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.
To apply, go to https://www.azcommerce.com/incentives/apply-now/
Cindy Grogan, Job Training Program Manager
Arizona Commerce Authority
118 North 7th Avenue Suite 400
Phoenix, Arizona 85007