TN · IWT

Tennessee Incumbent Worker Training: How to Get Reimbursed for Upskilling

Tennessee's Incumbent Worker Training (IWT) grant reimburses part of the cost of upskilling your current full-time employees. It is competitive. You apply through your local workforce board or American Job Center, and the money covers trainers, books, supplies and tuition, not wages. Employers match part of the cost: at least 10%, 25% or 50% by size. One board caps awards at $25,000.

Check my Tennessee eligibility How IWT works nationally

Reimbursa Eligibility Scanner

Tell us your state, industry, and recent training spend. We'll show you which workforce-reimbursement programs you likely qualify for — with estimated recoverable dollars — in about 30 seconds. No email required.

State pre-filled: TN
Program type pre-filled: incumbent_worker_training

Run My Free Scan

HOW IT WORKS

Four steps, in this order.

1
Complete the state pre-application, then your local board contacts you
2
Submit the local application and sign a contract with start and end dates
3
Train, pay the costs, and file the monthly online status report
4
Send reimbursement requests with proof of the training and of payment

1 VERIFIED PROGRAM

Where the Tennessee money comes from.

Run by Tennessee Department of Labor and Workforce Development, through local workforce boards and American Job Centers. Every figure is from an official page, linked on each card.

Incumbent Worker Training (IWT) grant

Reimburses training costs, employer match 10% to 50%

THROUGH YOUR LOCAL BOARD

WHAT YOU GET

Reimbursement of all or part of eligible training costs for existing full-time employees.

HOW MUCH

Employer share by size: at least 10% (50 or fewer employees), 25% (51 to 100), 50% (over 100). Trainer pay is capped at actual cost or $50 an hour. Northern Middle Tennessee caps awards at $25,000. Southeast Tennessee says the state program may pay up to 100% of training costs, which conflicts with the match rules; confirm with your board.

WHO RECEIVES THE MONEY

The employer, by reimbursement.

WHO QUALIFIES

Tennessee for-profit business, or not-for-profit in health care (a TNWorks page says for-profit or nonprofit)
In operation at least one year, at least five full-time employees
Current on local, state and federal taxes; not in bankruptcy
Trainees are existing full-time employees employed six months or more (Greater Memphis)

Before you start: Yes. A contract with your local board comes before reimbursement.

LOCAL BOARDS

Same program, different rules by board.

Northern Middle Tennessee Workforce Board (Workforce Essentials)

Consolidated Business Grant: $25,000 maximum, in-kind match of 10%, 25% or 50% by size, and no new grant within 12 months of a prior one.

SOURCE: THA.COM

Greater Memphis Local Workforce Development Board

Employer share is at least 10% (50 or fewer employees), 25% (51 to 100) or 50% (over 100); trainees need six months of history; invoices paid within 30 days of approved documents.

SOURCE: GREATERMEMWORKFORCE.COM

Southeast Tennessee workforce board

Email the pre-application to the board's business services contact; its page says the state may fund up to 100% of training costs to avert dislocation.

SOURCE: SECAREERCENTER.ORG

AVOID THESE

What gets Tennessee IWT claims denied.

Asking to reimburse trainee wages.
SOURCE: TN.GOV
Buying equipment or items usable outside the training.
SOURCE: TN.GOV
Assessment, testing or certification fees.
SOURCE: TN.GOV
Missing the monthly status report or performance goals.
SOURCE: TN.GOV
Required or mandatory training.
SOURCE: THA.COM

STRAIGHT ANSWERS

Tennessee IWT questions.

Does IWT pay my employees' wages while they train?

No. Trainee wages are non-reimbursable. The grant covers trainer pay, curriculum, books, supplies and tuition.

SOURCE: TN.GOV

How much must I contribute?

At least 10% if you have 50 or fewer employees, 25% for 51 to 100, and 50% for more than 100, under Greater Memphis policy and Northern Middle Tennessee guidance. Federal rule 680.820 requires an employer share.

SOURCE: GREATERMEMWORKFORCE.COM

Can a nonprofit apply?

The state IWT page says for-profit businesses, or not-for-profits in health care. The TNWorks page says for-profit or nonprofit. Check with your board.

SOURCE: TN.GOV

Is there a maximum award?

Northern Middle Tennessee's 2024 guidance sets $25,000. The state page lists no cap, so ask your own board.

SOURCE: THA.COM

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. 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.

OTHER PROGRAMS IN TENNESSEE

Reimbursa monitors workforce-reimbursement programs across every state and writes machine-checkable rules packs that prevent claim rejections. See membership pricing.