PURPOSE: This rule establishes guidelines for determining the eligibility of certain employees for training under the Individual Training Account Program, and clarifies when successful completion of the training program qualifies the employer to receive tax credits for the training activity.

1. (1) An eligible trainee must be a fullor parttime employed worker whose salary is equal to or less than two hundred percent (200%) of the present Federal Poverty Level.

   1. (A) Part-time employed workers must average a minimum of twenty (20) hours per week during the training period.
   2. (B) A full-time position is defined as a job that averages a minimum of thirty-five (35) or more hours a week.

2. (2) Tax credits may not be claimed until a trainee has successfully completed training and has been employed for a minimum of three (3) months in the upgraded, full-time, permanent position. Tax credits may only be claimed by companies for employees on their respective payrolls.

   1. (A) The upgraded position must offer the same benefits and comparable pay rates as other workers in the same occupation in the labor market area.
   2. (B) The upgraded position assumed by the trainee upon completion of training must be consistent within a career pattern of advancement.

   3. (C) Successful completion of training requires a showing that the employee has attained higher earnings, job advancement, and increased skill proficiency.

      1. 1. The higher wage rate shall be in addi-

tion to normal cost-of-living pay increases.

1. 2. The wage rate must be equal to or

higher than the average area wage rate for similar occupations.

1. 3. The upgrade position must offer a

minimum of fifty-one percent (51%) employer-funded medical benefits to the employee.

1. (D) Upgrade training is the progressive development of skills associated with a defined set of work processes.

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