A new state employment incentive program launched in November 2025 seeks to make it easier for employers to access business incentives, tax credits and fund talent pipeline development.
“Basically, TNWorks creates a no-wrong-door approach to workforce development for any size business,” explained Tyler Asher, assistant commissioner for the Tennessee Department of Labor and Workforce Development.
Asher believes the new program helps small and midsize businesses cut through the complexity of workforce programs, access financial incentives, and build stronger pipelines of talent — especially by connecting employers with motivated workers from underutilized populations.
“Small businesses often miss out on workforce incentives simply because the programs are spread across multiple agencies,” said Gregg Bostick, director of the Tennessee Small Business Development Center at Pellissippi State Community College.
Bostick pointed out there are programs that help offset salary costs for employers who hire youth, people with disabilities and provide Work Opportunity Tax Credits for hiring veterans and justice-involved workers.
But he admits those programs have in the past been challenging to initiate.
Youth Employment Program
Tennessee’s Youth Employment Program is one opportunity local employers can tap into that links young adults ages 14–24 with employers while the state pays up to a total of $3,500 of their wages.
Jessica Belitz, Blount Partnership Director of Workforce Development, said tapping into programs like the Youth Employment Program helps small businesses acquire workers but also builds the community.
“Programs like YEP help us develop a skilled talent pool and help us retain our local talent for the long-term success of our community and region,” Belitz said.
Each of the high schools in Blount County have work-based learning coordinators who help identify eligible youth workers and connect them to local employers.
“They’re getting real world experience,” Sara Bell, workforce development coordinator at William Blount High School, explained. “They’re seeing what the field is like. And that takes a partnership from a business owner.”
Greg Newman with Roger L. Newman Co. Heating and Cooling said his company has participated in YEP for several years.
“We’ve got three (students) right now who come in and work part time during the day,” Newman said. “The only hard part about it is it depends on their schedule as to when they can come in and work. One of them can’t get here until 1:30 in the afternoon, so that doesn’t leave you much time.”
But he said the company has offered full-time employment to students who finished the YEP program.
Bell said employers who are interested in hiring youth through the program should build relationships with the workforce development coordinators to help identify students who are ideally suited for the work situation.
Veterans Programs
The Work Opportunity Tax Credit program is a federal program that provides income tax reduction incentives for employers who hire veterans. The program expired in 2025, but S. 3265/H.R. 6231, the Improve and Enhance the WOTC Act, has been introduced and would extend the credit through 2030, increase the credit amount and add additional credits for military spouses.
The previous WOTC program included the Returning Heroes Tax Credit, which provided up to $2,400 for hiring veterans who have been unemployed at least four weeks and up to $5,600 for veterans who have been unemployed longer than six months.
There is also the Wounded Warrior Tax Credit, which provides up to $4,800 for veterans who have service-connected disabilities hired within one year of their discharge, and up to $9,600 for disabled veterans who have been unemployed for more than six months.
Re-Entry Programs for Justice-Involved Workers
Another source of qualified labor that many employers miss out on is workers who have served prison time or have legal records that make it difficult for them to find employment.
Justin White, Transition Coach with the Tennessee Office of Reentry’s Tennessee Higher Education in Prison Initiative pointed out that approximately 110,000 people in Tennessee are incarcerated or on community supervision today.
“Let’s be real,” he said, “we need to have a pipeline for those individuals to actively come back into the workforce here in Tennessee.”
White said many of those who are incarcerated participate in a program called the Lincoln Employment Activities Pre-Release that provides skilled trades training and helps inmates earn certification and college degrees while serving their sentences.
The Apprenticeship Training Grant supports Tennessee employers that are interested in starting an apprenticeship program. It provides on-the-job training assistance for eligible workers entering an apprenticeship as a new hire, classroom training for first or second-year apprentices, and classroom training for pre-apprenticeship participants.
White admits working with justice-involved employees does require additional effort; however, he points out that when employers commit to helping them reenter society in a healthy, supportive way, the risk of re-offending goes down — which means the community is safer.
How to Get Started
The best way to get started, Asher said, is to complete an intake form on the TNWorks website at www.tn.gov/tnworks/lets-connect.html where employers can explain their needs and initiate the process of getting assistance.
Employers can also call the American Job Center in Maryville at (865) 324-5482 to learn more.
