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On July 31, 2023, Pennsylvania Governor Josh Shapiro announced the creation of a “first-in-the nation job training program” that will provide up to $400 million in workforce development grants to provide the necessary skills needed for workers helping to build Pennsylvania’s infrastructure. 

The program is called the Commonwealth Workforce Transformation Program (CWTP) and will provide workforce development grants to companies, contractors, unions and other organizations that will be performing infrastructure work in Pennsylvania that is being funded by the Infrastructure Investment and Jobs Act (IIJA) or the Inflation Reduction Act (IRA). 

The CWTP will provide grants up to $40,000 for each new worker an eligible employer trains and up to a maximum of $400,000 in grants per project. An eligible employer is any entity that received either a contract or grant from a Pennsylvania agency or the federal government under the IIJA or IRA for work occurring in Pennsylvania, or any entity that received a tax credit from the U.S. Department of Treasury under the IRA for a project of greater than $10 million located in Pennsylvania.

The grants will cover:

  • Wages
  • Supportive services
  • Payroll taxes
  • Pre-apprenticeship program costs
  • Costs associated with establishing a training program
  • Costs incurred for the use of a training facility

Pennsylvania has released a set of Q&A’s and a fact sheet on the program, and we anticipate more details to be announced in the coming weeks.

The CWTP provides a great opportunity for eligible employers, including contractors. With these funds, contractors can capitalize on one of the key requirements of receiving enhanced Investment Tax Credits for energy-related projects as included in the IRA: the qualified apprenticeship requirement. This requirement defines a minimum percentage of total trade and craft labor hours that must be performed by qualified apprentices, and eligible employers could potentially utilize CWTP grant funds to recruit and train new workers.

Please don’t hesitate to contact us if you have any questions regarding CWTP eligibility, how the program operates or how to take full advantage of this program in tandem with IRA-related credits.

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Brian J. Kassalen
Partner
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