New
Mexico Register / Volume XXXVI, Issue 13 / July 15, 2025
This is an amendment to 5.5.50 NMAC, Section
10, effective July 15, 2025.
5.5.50.10 REIMBURSABLE
EXPENSES:
A. The following expenses may be eligible for reimbursement
through JTIP.
(1) A percentage of trainee wages for up
to six months of initial training.
(2) Cost of providing custom classroom
training at a New Mexico post-secondary public educational institution with a
cap of $6,000 per trainee. Reimbursement
for classroom training is consistent with JTIP policy and ranges from fifty
percent to seventy-five percent based on company location.
(3) A percentage of intern wages for up to
1040 training hours.
B. Standard reimbursement rates for wages range up to
seventy-five percent. Positions that
meet the JTIP requirements with starting wages at levels eligible for the high
wage job tax credit may be also eligible for an additional five percent wage
reimbursement. Positions filled by
trainees who meet any of the three following criteria may be eligible for an
additional five percent wage reimbursement above the standard rates if the
approved entry wage is at least the minimum rate for the Job Zone as outlined
in the JTIP wage chart on Paragraph (2) of Subsection D. of 5.5.50.10 NMAC for
Zones 1, 2, 3 and 4:
(1) Trainee has graduated out of the New
Mexico Foster Care System.
(2) Trainee has graduated within the past
12 months from a post-secondary training or academic program at a New Mexico
institution of higher education.
(3) Trainee is a U.S. veteran.
Companies may
combine any one of the three conditions above with the additional five percent
wage reimbursement for high-wage positions, for a total additional wage
reimbursement not to exceed ten percent above the standard rates. If a company is participating in other job
reimbursement training programs such as the Workforce Innovation and
Opportunity Act (WIOA), the combined reimbursement to the company may not
exceed one hundred percent.
C. JTIP approved employers that utilize business support
services through the recognized New Mexico Workforce Connection offices across
the state or through other independent human resource support service providers
that help small businesses develop successful recruitment strategies to grow
and retain their workforce may be eligible for an additional five percent
reimbursement above the standard rates.
D. The job training incentive program allows for
reimbursement only at the completion of training. If an employee does not complete the training
period, no funds can be claimed for that employee. If another trainee can be hired in that
position within the six month hiring period and complete training before the
contract end date, a claim can be submitted for the successful trainee.
E. Wage reimbursement:
(1) Trainee wages are generally the
largest expense associated with training.
JTIP reimburses the company for a significant portion of trainee wages
during the initial training period. The
percentage of standard reimbursement ranges up to seventy-five percent,
depending on the business location.
(2) The number of hours eligible for
reimbursement varies by position, up to 1,040 hours (six months). The number of hours eligible for
reimbursement for each position is based on the O*NET (occupational information
network) job zone classification for the O*NET position which most closely
matches the company’s job description and the wage
paid the trainee at the point of hire.
The O*NET system, sponsored by the US department of labor, is available
at http://onetonline.org. Each job in
the O*NET system is assigned to one of five job zones, with recommended
training hours for each zone. For fiscal
year [2025] 2026, the JTIP board may maintain wage requirements effective
in the first year of JTIP approval for the length of the job ramp within the
project participation agreement (PPA) for companies that are also engaged in a
LEDA agreement with the economic development department provided the company
meets job creation requirements within the period and wages do not fall below
the statewide minimum wage.
The number of
recommended hours for fiscal year [2025] 2026 are outlined in the
table below.
|
General Guideline for Duration of
Reimbursable Training Time/Wages for [ |
|||||||
|
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
|
1 |
Little or no
preparation needed |
Below 4.0 |
320 |
[ |
[ 13.56 |
40 |
8 |
|
2a |
Some preparation
needed |
4.0 to < 6.0 |
480 |
[ |
[ |
60 |
12 |
|
2 |
Some preparation
needed |
4.0 to < 6.0 |
640 |
[ |
[ |
80 |
16 |
|
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
[ |
[ |
100 |
20 |
|
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
[ |
[ |
120 |
24 |
|
4 |
Considerable
preparation needed |
7.0 to < 8.0 |
1,040 |
[ |
[ |
130 |
26 |
|
|
Align with HWJTC |
Additional five
percent |
|
28.85 |
19.23 |
|
|
(3) The JTIP staff will ensure that the
O*NET occupations match the company job description for the requested position
and that training hours requested do not exceed the O*NET guideline. The board will also review the company's
educational and experience requirements of the applicants to determine the
degree of match with the company's job descriptions. The JTIP board may award training hours based
on the O*NET guideline unless the company clearly substantiates that additional
hours are required. In determining the
appropriate number of training hours, the board considers the training plan,
the training objectives, and the hourly wage at point of hire associated with
the position.
(4) The board has also adopted a wage
requirement for JTIP participation. The
wage requirement varies by job zone and company location (rural/urban). These requirements are listed in the tables
above. If a company establishes a wage
range which includes wages below the minimum wage recommended for that position
and job zone, the number of hours eligible for reimbursement may be reduced
from the O*NET recommended hours as per criteria and procedures set forth by
and at the discretion of the JTIP board, which may include consideration of the
company benefits package. Generally, the
hours are reduced to the hours allowed for the next lower job zone. The reimbursement percentages may be adjusted
at the discretion of the board based on availability of funds or sufficient
appropriations.
(5) The percentage of wages reimbursed
depends primarily on the business location.
The categories for location are urban, rural, frontier, economically
distressed, and Native American land.
(a) Companies located in urban areas
(cities with population above 60,000 in the most recent federal decennial
census) and Class H counties (i.e., Los Alamos) are reimbursed at up to fifty
percent for all eligible training hours.
Urban communities are: Albuquerque 562,599, Las Cruces 112,914, Rio
Rancho 111,803, and Santa Fe 88,193.
(b) Companies located in rural areas,
outside those listed above are reimbursed at up to
sixty-five percent for all eligible training hours.
(c) Companies located in frontier areas
(communities with a population of 15,000 or fewer and outside an MSA) are
reimbursed at up to seventy-five percent for all eligible training hours.
(d) Companies located in an economically
distressed area in New Mexico are eligible for up to seventy-five percent
reimbursement. To receive up to
seventy-five percent reimbursement, a company must be located
in a county with an unemployment rate significantly higher than the
state unemployment rate. However, the
JTIP board may entertain an exception to this policy when a company is located in a community experiencing a combination of
other distressed economic conditions such as recent significant job losses due
to business closures or down-sizing, a decline in population, loss of gross
receipts or other factors.
(e) Companies located on Native American
reservations are eligible for up to seventy-five percent reimbursement.
(f) Companies located in federally
designated colonias in New Mexico are eligible for up to seventy-five percent
reimbursement for all eligible training hours.
(6) JTIP eligible positions with starting
wages eligible for the high wage job tax credit may be eligible for an
additional five percent reimbursement.
These requirements are a hiring salary of $60,000 or higher in an urban
or class H county and a hiring salary of $40,000 or higher in a rural location
or economically disadvantaged area.
Trainee requirements are still factors for JTIP eligibility. The percentage of wages reimbursed for
high-wage positions filled by trainees who do not meet the one-year residency
requirement is unique and not subject to any additional wage reimbursement
above the standard rate. Companies
located in urban areas and Class H counties are reimbursed up to [thirty]
forty percent for all eligible training hours. Companies located in rural areas are
reimbursed up to [forty] fifty percent for all eligible training
hours. Companies located in frontier
areas are reimbursed up to [fifty] sixty percent for all eligible
training hours.
(7) JTIP eligible positions filled by
trainees who have graduated within the past 12 months from a post-secondary
training or academic program at a New Mexico institution of higher education
may be eligible for an additional five percent reimbursement.
(8) JTIP eligible positions filled by U.S.
veterans may be eligible for an additional five percent reimbursement.
(9) Trainee has graduated out of the NM
Foster Care System may be eligible for an additional five percent reimbursement.
(10) Additional guidelines for wage
reimbursement:
(a) Eligible trainee hours shall not
exceed 1,040 hours per trainee (six months) based on the company's scheduled
workweek, not to exceed 40 hours per week.
(b) Reimbursement is calculated on base
pay only. Bonus pay,
overtime, commission and stock options are not eligible for reimbursement.
(c) If the company compensates the trainee
for annual, holiday or sick leave during the approved
training period, those hours are included in the approved training hours at the
base rate.
(d) Any training hours that exceed the
contracted amount are the responsibility of the company.
(e) If a company is participating in other
job reimbursement training programs such as WIOA, the combined reimbursement to
the company may not exceed one hundred percent.
(f) Additional wage reimbursement may not
exceed ten percent above the standard rates. Companies may combine the
additional five percent wage reimbursement for high-wage jobs with one of the
three following conditions for an additional five percent wage reimbursement
provided the entry wage is at least the minimum rate for the job zone as
outlined in the JTIP wage chart on Paragraph (2) of Subsection D of 5.5.50.10
NMAC for Zones 1, 2, 3 and 4:
(i) the trainee has
graduated out of the New Mexico foster care system;
(ii) the trainee has graduated within the
past 12 months from a post-secondary training or academic program at a New
Mexico institution of higher education;
(iii) the trainee is a U.S. veteran. High-wage positions filled by trainees who do
not meet the one-year residency requirement are not eligible for additional
wage reimbursement above the standard rate.
F. Reimbursement for custom classroom training:
Payment for custom classroom training services provided by public
post-secondary educational institutions is restricted to instructional
costs. The rate of reimbursement to the
institution is at a maximum of $6,000 per trainee. Instructional costs for classroom training
conducted by an educational institution may include course development,
instructional salaries, relevant supplies and materials, expendable tools,
accounting services, and other costs associated with conducting the training
program. No training equipment may be
purchased or rented using JTIP funds.
[5.5.50.10 NMAC - Rp, 5.5.50.10 NMAC, 6/26/2018; A,
1/1/2020; A, 7/14/2020; A, 7/7/2021; A, 7/12/2022; A, 6/27/2023, A 7/16/2024, A
7/15/2025]