PURPOSE: This rule sets out the process for an employer to participate in the Individual Training Account Program, and sets out how the employer makes subsequent application for tax credits after employee training is complete. This rule also provides guidance as to what expenses qualify for tax credits.

1. (1) In order to participate in the Individual Training Account Program, an employer must submit an Employer Notification request using forms prescribed by the Division of Workforce Development (DWD) providing all information required to the DWD. The Employer Notification shall include, but is not limited to, the following:

   1. (A) Names and occupations of employees to be trained;
   2. (B) The trainees’ Social Security numbers;
   3. (C) The date of hire or anticipated date of hire of the trainees and corresponding wage rates; 4 CSR 195-5
   4. (D) The name and location of the training provider(s);
   5. (E) The dates the training will occur for each trainee;
   6. (F) A description of the training to be provided; and
   7. (G) The company’s Unemployment Insurance Identification Number.

2. (2) Training may begin after the notification is received and given preliminary approval by the DWD.

   1. (A) Tax credits can only be claimed for training approved by the DWD.
   2. (B) Training for each trainee cannot exceed two (2) calendar years.
   3. (C) A maximum credit that can be claimed for each trainee is the lesser of fifty percent (50%) of the actual training costs or one thousand five hundred dollars ($1,500) per year.

3. (3) In order to receive tax credits for upgrade training, an employer must submit a Tax Credit Request Form to the DWD.

   1. (A) The employer must submit the following with the Tax Credit Request Form:

      1. 1. Verification from the training

provider that the employee successfully completed training;

1. 2. Documentation satisfactory to the

DWD that the employee has increased his/her wage rates. Documentation of this may include, but is not limited to, copies of a payroll register;

1. 3. Documentation satisfactory to the

DWD that the employee has been employed in a new, full-time position with the employer for at least three (3) months; and

1. 4. Documentation satisfactory to the

DWD of the employee’s responsibilities in his/her new position and a brief description of how these have increased from the employee’s pre-training position.

1. (B) The DWD will verify the information on the Tax Credit Request Form, and notify the Department of Revenue.

1. (4) The employer/recipient may assign, sell or transfer, in whole or in part, the Individual Training Account Tax Credits.

   1. (A) To perfect the transfer, the assignor (person selling the tax credits) shall provide written notice to DWD of the assignor’s intent to transfer the tax credits to the assignee, the date the transfer is effective, the assignee’s name and address, the assignee’s tax period and the amount of tax credits to be transferred.
   2. (B) The assignee shall provide written notice to DWD specifying the number of consecutive tax periods the transferred tax credits are to be claimed; except that, the number of tax periods during which the assignee may subsequently claim the tax credits shall not exceed five (5) tax periods less the number of tax periods the assignor previously claimed or held the tax credits before the transfer occurred.

2. (5) For the purpose of determining the amount of tax credits authorized, eligible training costs include tuition, instruction, curriculum design, training materials, the leasing of classroom space or training equipment, and other related training expenses that do not exceed the prevailing rates.

   1. (A) Eligible training providers are local educational institutions that are publicly or privately funded and certified by the Department of Higher Education or the Department of Elementary and Secondary Education.
   2. (B) The purchase of classroom facilities, space or training equipment are not eligible costs.

AUTHORITY: sections 620.1410, 620.1420, 620.1430, 620.1440 and 620.1460, RSMo Supp. 1999.* Original rule filed March 15, 2000, effective Oct. 30, 2000. *Original authority: 640.1410, RSMo 1998; 640.1420, RSMo 1998; 620.1430, RSMo 1998; 620.1440, RSMo 1998; 620.1460, RSMo 1998.