The Texas Workforce Commission administers the state's workforce development system, operating programs that provide direct financial benefits to Texas employers. From training grants and hiring subsidies to tax credits and apprenticeship support, TWC programs can significantly offset workforce costs for businesses of all sizes.
Skills Development Fund
The Skills Development Fund is Texas's primary customized training program for employers. Grants go to community and technical colleges that partner with businesses to design training programs.
- Custom training: Training designed around employer-specific needs — equipment, processes, certifications, and skills gaps
- New worker training: Training for newly hired employees, often including recruitment assistance
- Incumbent worker training: Upgrading skills of existing employees to improve productivity and competitiveness
- Small business component: Dedicated funding for small business training needs
WOTC Administration
TWC administers the Work Opportunity Tax Credit for Texas employers. WOTC provides federal tax credits of $2,400 to $9,600 per qualifying hire from target groups including veterans, SNAP recipients, TANF recipients, and ex-felons. Complete WOTC guide for Texas.
Workforce Solutions Programs
TWC oversees 28 local Workforce Solutions offices that provide employer services:
- On-the-Job Training (OJT): Wage reimbursement of 50-75% during a training period for new hires
- WorkInTexas.com: The state's job matching platform connecting employers with qualified candidates at no cost
- Rapid Response: Assistance for employers facing layoffs or closures, helping affected workers transition to new employment
- Labor market information: Data on wages, employment trends, and workforce availability to support business planning
Apprenticeship Programs
- Apprenticeship Training Program (ATP): Reimbursement for classroom-related instruction costs in registered apprenticeship programs
- Industry-recognized apprenticeships: Support for employers developing and operating apprenticeship programs in construction, healthcare, IT, manufacturing, and other industries
Self-Sufficiency Fund
The Self-Sufficiency Fund provides grants to community-based organizations, community and technical colleges, and Workforce Solutions boards to train TANF recipients and low-income individuals for employment. Employers partner with grantees to provide job placements for program participants.
Child Care Programs
TWC administers Texas's child care subsidy system, which indirectly benefits employers by helping their employees access affordable child care. Employers in the child care industry also interact with TWC through licensing, quality rating (Texas Rising Star), and workforce development programs.
Unemployment Insurance
TWC administers the unemployment insurance system for Texas employers. Understanding the UI tax system and managing claims properly can reduce employer costs:
- New employer tax rates and experience rating methodology
- Voluntary contribution options to reduce tax rates
- Shared work programs as an alternative to layoffs
How Texas Employers Access TWC Programs
- Contact your local Workforce Solutions office: Local offices administer many TWC programs and can assess your eligibility for training subsidies and hiring incentives
- Visit twc.texas.gov: TWC's website provides program descriptions, applications, and employer resources
- Partner with a community college: Skills Development Fund grants require a community or technical college partner
- Apply for WOTC: Submit certification requests through TWC within 28 days of each qualifying hire
Bottom Line
TWC programs provide some of the most directly accessible benefits for Texas employers — training grants, hiring subsidies, tax credits, and workforce services. These programs are specifically designed to reduce the cost of hiring, training, and retaining workers.
Our screening report identifies which TWC and other workforce programs may apply to your Texas business. Start your free screening →