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Indiana Incumbent Worker Training: How to Get Reimbursed for Upskilling

Indiana has no separate incumbent worker program, but two state grants pay for training current staff. The Employer Training Grant (DWD) reimburses up to $5,000 per employee, and current employees must get a raise after training. The Skills Enhancement Fund (IEDC) reimburses typically 50% for training tied to new capital investment. WIOA incumbent worker training is also allowed federally, and some local boards, such as Northwest Indiana, say they use it.

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  • State pre-filled: IN
  • Program type pre-filled: incumbent_worker_training
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HOW IT WORKS

Four steps, in this order.

  1. 1

    Choose the grant: ETG for in-demand job skills, SEF if training backs a capital project

  2. 2

    Get the plan approved before training starts

  3. 3

    Train current staff and keep payroll records showing the raise

  4. 4

    Invoice for reimbursement

3 VERIFIED PROGRAMS

Where the Indiana money comes from.

Run by Indiana Department of Workforce Development (DWD), with your regional WorkOne local workforce area. Every figure is from an official page, linked on each card.

Employer Training Grant (ETG), for current employees

Up to $5,000 per employee, $50,000 per employer
OPEN, THROUGH LOCAL AREAS
WHAT YOU GET

Reimbursement of training costs for current employees, up to $5,000 each and $50,000 per employer. DWD says the grant covers new or incumbent workers.

HOW MUCH

Up to $5,000 per employee for training that ends in a post-secondary or nationally recognized industry credential; up to $1,000 per employee for specialty company training; up to $50,000 per employer. The amount is based on actual training cost.

WHO RECEIVES THE MONEY

The employer, by electronic payment from the local workforce area after DWD approves the invoice.

WHO QUALIFIES
  • Indiana employer with an Indiana SUTA account, Secretary of State registration and a physical Indiana location
  • Training in one of six sectors: advanced manufacturing, agriculture, building and construction, health and life sciences, IT and business services, transportation and logistics
  • Occupational skills training of at least 40 hours that ties to an in-demand occupation; onboarding and informal job shadowing do not count
  • Trainees kept six months from the start of training; new hires paid a minimum wage and current employees given a raise (see FAQ for conflicting figures)
Before you start: Yes. DWD or the local area must approve your training plan and you must sign a grant agreement before training starts.
HOW TO APPLY
  1. 1Submit the online interest form on the DWD website
  2. 2Send the job description with salary range and your training plan to the local area
  3. 3Sign the training agreement, train, then submit the invoice after the six-month retention date

Deadlines and windows: Agreements run 9 months and training must begin within 3 months of the agreement start. Invoices are due within 14 days of the agreement end date. Funding is not guaranteed (manual covers the 2025 grant cycle; confirm current funding with your region).

SOURCE: IN.GOV

Skills Enhancement Fund (SEF), for existing workers

Typically 50% of training costs
OPEN, BY CONTRACT WITH IEDC
WHAT YOU GET

A reimbursement of a portion of eligible training costs, typically 50%, over two full calendar years from project start.

HOW MUCH

Typically 50% of eligible training costs. No dollar cap is published on the IEDC pages. At most 50% of the award can go to trainee wages and 30% to travel.

WHO RECEIVES THE MONEY

The employer, as reimbursement of eligible training costs under a grant contract with the Indiana Economic Development Corporation (IEDC).

WHO QUALIFIES
  • Training supports new capital investment in Indiana
  • Training leads to a post-secondary or nationally recognized industry credential, or is specialized company training
  • Existing employees who are trained must also get a wage increase
  • Creates or keeps full-time permanent jobs for Indiana residents at the project location
Before you start: Yes. Only costs between the commencement and expiration dates in the grant agreement count.
HOW TO APPLY
  1. 1Contact IEDC through the Contact Us link on the SEF page
  2. 2Agree a training plan and grant contract before you spend
  3. 3Report each calendar year and submit training expense data with each payment request

Deadlines and windows: Costs count over two full calendar years from the commencement of the project. Annual reporting runs for about seven years. No application deadline is published.

SOURCE: IEDC.IN.GOV

WIOA incumbent worker training through a local workforce board

Board-funded, you pay a share
THROUGH YOUR LOCAL BOARD
WHAT YOU GET

Training for current workers with a board-funded share. You pay the non-federal share of the cost.

HOW MUCH

The employer's share is set by WIOA section 134(d)(4) and depends on employer size. No Indiana board rate was found on a board page.

WHO RECEIVES THE MONEY

The employer, or a group of employers, under a local board contract. Money flows only where a board has funded it.

WHO QUALIFIES
  • Worker is employed and has 6 months or more of history with you, with a cohort exception
  • Training meets the local board's policy
Before you start: Yes. Ask your board before you train.
HOW TO APPLY
  1. 1Call your local WorkOne business services team
  2. 2Ask whether the board funds incumbent worker training this year
  3. 3Sign the board agreement before training

Deadlines and windows: Set by each board. No statewide Indiana window found.

SOURCE: ECFR.GOV
LOCAL BOARDS

Same program, different rules by board.

Northwest Indiana Workforce Board (Region 1)

Says it has worked with local economic development groups to provide incumbent worker training. It publishes no rate in the plan.

SOURCE: IN.GOV
AVOID THESE

What gets Indiana IWT claims denied.

  • Treating the training as a general expense. ETG needs 40 hours or more of occupational skills training.
    SOURCE: IN.GOV
  • No wage gain after training for current employees.
    SOURCE: IN.GOV
  • Training outside the grant dates. SEF will not pay costs before the start date or after the end date.
    SOURCE: IEDC.IN.GOV
  • Using ETG and OJT or SEF for the same employee.
    SOURCE: IN.GOV
STRAIGHT ANSWERS

Indiana IWT questions.

Is a raise really required for current employees?

Yes. The 2025 DWD manual and the FY26 fact sheet say a minimum 5% raise after training for people trained 61 or more days after hire. An older DWD FAQ page still says 3%. Plan on 5% and confirm with your region.

SOURCE: IN.GOV
Do trained employees have to stay?

Yes. They must stay six months from the start of training. If one leaves on good terms for another job after finishing, the retention rule may be waived.

SOURCE: IN.GOV
What does the employer pay under WIOA incumbent worker training?

You pay the non-federal share of the training cost. The share depends on limits in the WIOA statute and your board's policy.

SOURCE: ECFR.GOV
Who counts as an incumbent worker under WIOA?

An employed worker with 6 months or more of history with you. A cohort can include newer staff if most have 6 months.

SOURCE: ECFR.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on . Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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