IWT Overview

IWT Overview
IWT Overview
The Incumbent Worker Training (IWT) program is a grant funding resource, helping to
off-set a portion of
skills-based training
costs for incumbent (existing) workers employed by Montana's private sector. Businesses must demonstrate that training will
increase
the worker's
skill-level
, result in a
promotion or wage gain
, or
expand
their
business market/increase business revenue
with the intent of
preserving existing jobs
for Montana residents.
Funding is allocated to the Montana Department of Labor & Industry (MTDLI) on a State Fiscal Year at the discretion of the Montana Legislature and is not guaranteed. This competitive worker retention grant has $540,000 available each Fiscal Year (FY). Applications are submitted through Submittable for trainings of incumbent workers. Conditional awards provide up to $2,500/full time employee and $1,000/part-time employee.
Please refer to the
related Montana Code Annotated and Administrative Rules
for criteria, rulemaking, requirements, processes, evaluation/limitations, claims and appeals.
Although funding is provided as reimbursement, award notifications must be in place prior to training start date.
When is the Right Time to Apply?
Apply now for grants to support training that begins before June 30.
Applications must be submitted at least 14 days prior to the training start date to be in compliance.
We encourage you to register with Submittable. To sign up for access, please visit
www.submittable.com
Submittable Funding Platform
Applications must be approved before training begins.
IWT Checklist
Funding is distributed over the fiscal year in four quarters. Quarters are open until funding is exhausted.
• Quarter 1: July 1 – Sept 31 (start of the fiscal year’s funding)
• Quarter 2: October 1- December 31
• Quarter 3: January 1 – March 31
• Quarter 4: April 1 – June 30
Quarters are then divided into three categories of eligible Organization size based on employee count.
• Small Organization: 1-20 employees
• Medium Organization: 21-50 employees
• Large Organization 50+ employees
How the Submittable Funding Platform Works when Applying for IWT Support
Please Check Eligibility Before Applying
What is equitable distribution and how does that affect my application?
The department reserves the right to defer the review of multiple grant applications submitted by any single employer, to provide funding to employers on an equitable basis.
IWT is not intended to be an annual professional development resource.
Employers who have received prior or current FY awards may not be funded in order to accommodate new applicants.
IWT is not intended to fill trainer classrooms - multiple apps for the same training may be denied.
Reviewers may limit multiple applications within one city/county to ensure other cities/counties have access.
Reviewers may limit multiple requests from different organizations for one training outfit or individual trainer.
What business is eligible?
For-profit or non-profit business operating in Montana for at least one (1) year (minimum of 365 days)
Registered with the
Montana Secretary of State's Office
(some exceptions apply)
Can meet employer matching funds requirement (see matching funds requirement below)
What business is not eligible?
Public entities such as city, county, state and federal government
Tribal governments, tribal enterprise, Section 17
Seasonal operations or businesses that operate less than 11 months of the year
Business operating outside of the state of Montana
What employees are eligible?
Predominately year-round employees (average 20 hours/week or more; working a minimum of an 11-month period)
Completed at least six (6) months of employment
Montana resident working in Montana
What employees are not eligible?
Public entities such as city, county, state and federal government
Tribal government or tribal enterprise employees
Temporary or seasonal employees
New hire: employees with less than six (6) months employment
Employees who work for a Montana company but reside out-of-state
Consultants/contractors hired by the business (not an employee)
Volunteer workers, board members (i.e. any non-paid individual)
Employees who work less than 20 hours average/per week predominately year round (11 months)
What training is eligible?
Skills-based training - training in a new task or new way of performing an old task; or
Certification - results in an increased skill through an industry-recognized credential/licensure (not required to maintain professional certification or licensure)
What training is not eligible?
All staff training
Continuing education required to maintain professional certification or licensure
Training customarily required or provided by the business or industry
Conferences
Training that occurred prior to the grant request being awarded
Subscription/Membership related trainings
Retreats
Trainings that exceed a year's time from start to finish
Training for which the incumbent worker was hired to do
What format for training is eligible?
Classroom
One-on-one instruction
Off-site training
Online, interactive: student has access to a trainer, demonstrates learning, and provides suitable proof of completion
What format for training is not eligible?
Online, self-paced and self-guided; at-home purchased software or kits; lacks proof of completion.
In-house training from internal trainer(s), owner(s), manager(s) or others who are on the payroll of the organization.
Trainings that exceed a one-year duration.
What training expenses are allowed?
Application/registration fee
Test fee
Supplies - such as books
Materials – such as specialty items required to complete the training (not asset purchases)
*Applicant should be prepared to provide estimates
What training expenses are not allowed?
Per diem or meal allowance
All-inclusive packages for training (you will be asked to remove food/drink expenses)
Asset purchases
Employee wages during time of training
Reimbursement of airline miles (redemption of frequent flier miles)
Subscriptions or Memberships
What in-state travel expenses are eligible?
Mileage to and from the training site
Car rental (if required)
Shuttle/taxi if not using car
Lodging – required to use look-up,
Per Diem Rates | GSA,
for allowable lodging rates
In-state travel is covered at 80%, with a 20% match requirement.
What out-of-state travel expenses are eligible?
Mileage to and from the training site
Commercial transportation (airfare)
Baggage check
Long- or short-term parking
Car rental (if required)
Shuttle/taxi if not using a car
Lodging – required to use look-up,
Per Diem Rates | GSA
, for allowable lodging rates
Out-of-state travel is covered at 50%, with a 50% match requirement.
Grant Amounts
Grant caps are tiered, based on the number of hours an eligible employee works:
20-34 hours a week year-round up to $1000
35+ hours a week year-round up to $2500
Qualifying Costs
Grant funding may reimburse all or part of the costs of training eligible employees. Reimbursable expenses include:
Tuition, registration, fees, and required materials.
Transportation required to attend training such as mileage or airfare.
Lodging required to attend training.
Match Requirements
IWT requires the applicant to match grant dollars:
20% of training costs;
20% of in-state transportation and lodging required to attend the training; and
50% of out-of-state transportation and lodging required to attend the training
Any 20% match may be met in kind using wages paid while in training and travel status, except for sole proprietors.
Wages as Match
Employers, who apply for IWT funding and indicate attendee wages as match, are required to pay the employee for the hours they participate in the training. IWT funding cannot be used to compensate the employee during training.
As per: MCA 2019, Title 53, Chapter 2, Part 12
53-2-1217. Incumbent worker training program criteria for applicants
Grant Funding Disbursement
IWT is a reimbursement program. By law, funding may not be released to grantees until the Department receives:
Proof of payment issued by the trainer (i.e. a receipt);
Receipts for other approved costs; and
Proof of completion issued by the trainer.
Required Application Forms
FY25 Grant Calculation Worksheet (effective 7/1/2024)
204 Electronic Funds Transfer (PDF)
IWT Frequently Asked Questions
Most Common Applicant Questions and IWT Answers
How do I calculate number of employees to determine my organization size?
The employee count should include all employees who work an average of 20+hours/week, predominately year round.
Do not include:
• seasonal employees or individuals working less than 20+ hours/week.
• Any non-paid individuals such as volunteers or board of directors
IWT and the Montana Registered Apprenticeship Program
Are apprentice(s) eligible for IWT funding to apply toward training?
Yes, as long as they meet the minimum qualifications of 20 hours per week and have 6-months on the job. When you complete the application, be prepared to list your DLI Registered Apprentice connection.
Key things to keep in mind:
The Apprentice should not complete the application. Application submissions are the responsibility of the employer or someone who has signing authority for the organization.
IWT does not pay employee wages while in training.
IWT does not pay for capital purchases or equipment.
Although IWT is a reimbursable grant, applications must be remitted and approved before training starts.
IWT cannot fund an entire apprenticeship, as funding is not guaranteed.
Training must start and end in less than a year’s time.
IWT cannot reimburse incomplete coursework, so it is in the organization’s best interest to apply for a course/class/book at a time.
IWT will pay for certification/testing fees once. Reimbursement is not dependent upon the employee passing the test. However, IWT will not pay for re-testing.
If an apprentice attends a college course, and qualifies for the tuition waiver, IWT can help with supporting funds to cover items such as books, mileage, testing fees, registration fees, and required materials.
IWT reimburses the organization not the individual.
Third Party Assistance on Application
Grant Writer:
A grant writer or employee within the organization may prepare the application and complete all of the forms, but the application must be submitted by the owner of the company or someone with signing authority. This means that
grant writers may prepare the application, but someone with signing authority from the business must log in
and click the submit button
. The same is true for financial agreements and reimbursement claim forms, assuming the application is approved and funded.
Trainers or Third Party Consultants:
Trainers or third party consultants, who are direct beneficiaries of the requested funding, are
prohibited from completing the grant application on behalf of the business
, as this is viewed as a conflict of interest. Trainers/consultants may offer supporting documentation and guidance, but are not permitted to remit an application on behalf of the business/organization seeking funding for their services.
Fiscal agent
:  In order to alleviate a financial hardship, small businesses and nonprofits may elect to have a Fiscal Agent help with the financial aspects of the application. Given the nature of the reimbursement process of this funding opportunity, payment for training would be paid by the Fiscal Agent. All other documents within the application would be the Applicant Organization, but the W9 and elective EFT form would be the Fiscal Agent.
Reimbursements would be sent to the Fiscal Agent
, once the Applicant Organization remitted proof of payment and proof of completion from the trainer.
Partner Agencies
The Department collaborates with several organizations who may be able to assist you in other needs.
Montana Department of Revenue: Trades Education and Training Tax Credit - Employers may take a tax credit for expenses incurred while providing employees with education and training for a trade profession.  To learn more, visit
Trades Education and Training Tax Credit
Montana Economic Developers Association
Mainstreet Montana Program
Montana Manufacturing Extension Center at MSU Bozeman
Small Business Development Centers sponsored by the Montana Department of Commerce
Your local
Job Service Office
Montana Registered Apprenticeship
Montana State University Professional Development & Training
University of Montana Office of Organizational Learning and Development
Accelerate Montana
Contact Information
Chery Sabol, Program Manager
Workforce Services Division
406.218.7400
Email: iwt@mt.gov
Department of Labor & Industry
Privacy & Security
Services
Agencies
Official Montana State Website
Contact Information
Phone
(406) 444-4100
Fax
: (406) 444-3037
Mailing Address
P.O. Box 1728
Helena, MT 59604
Physical Address
100 North Park Avenue
Helena, MT 59624-1728
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