Funding Your Workforce Training: A Guide for Maine Employers

For a deeper walk-through of both programs, the Roux Institute hosted a webinar with representatives from the Dirigo Business Incentives Program and the Maine Workforce Development Compact. They cover eligibility, the application process, and how the programs can work together, including a Q&A with common employer questions.

Are you being asked to modernize operations, adopt AI tools, and improve productivity, while still managing staffing gaps and budget constraints? Many Maine employers are balancing exactly that. Workforce development is no longer optional, but investing in it requires careful planning.

The good news is that Maine has two meaningful programs to help businesses invest in their people: the Dirigo Business Incentives Program and the Maine Workforce Development Compact. Used separately or together, they can substantially reduce the cost of training for eligible employers.

The Dirigo Business Incentives Program

The Dirigo Business Incentives Program, administered by the Maine Department of Economic and Community Development (DECD), offers eligible businesses a state tax credit for both capital investment and employee training.

For workforce training specifically, the program provides a $2,000 per-worker tax credit annually when a business provides qualified training. The credit is capped at $2 million per business per year and can be taken over five years. For businesses with low tax liability in Maine, up to $500,000 of the credit is refundable annually, which makes it relevant even for organizations that do not carry a large state tax burden.

To qualify, a business must be for-profit and operate in one of the following sectors: agriculture, forestry, and fishing; manufacturing; long-distance freight transportation; software publishing, data processing, and computer design; or engineering, architecture, and scientific research and development services. Eligibility is determined by NAICS code.

To claim the worker training credit, a business must meet several requirements: at least three employees must complete qualified training within the tax year, each employee must complete at least 20 hours of training, and the business must pay more than $2,000 in wages during training hours per employee.

Critically, any training that begins before a business receives its Dirigo certification will not be eligible for the credit. The application process is straightforward, and once certified, the credit is available every year that a business has eligible investment or training activity. There is no sunset date in statute.

The Maine Workforce Development Compact

The Maine Workforce Development Compact is a broader program designed to help Maine employers in all industries upskill their current workforce. It is administered by the Harold Alfond Center for the Advancement of Maine’s Workforce, part of the Maine Community College System.

The program is free to join. Once a company becomes a Compact member, it can access up to $1,200 per employee per year as a matching contribution toward the cost of training. The employer brings matching dollars, effectively doubling the training budget for each eligible employee. The program is capped at $250,000 per organization per year.

Training must be for frontline workers, defined broadly as any employee below the C-suite level. Eligible employees must be Maine residents, at least 18 years old, with a high school diploma or equivalent.

Training is employer-driven and includes: industry-specific and role-specific programs, professional development courses, company-wide training such as safety or DEI programs, and training required for certifications or licensure. Online, in-person, and hybrid formats all qualify.

Funding requests must be submitted and approved before training begins. The Compact will not reimburse training that has already occurred.

The program is funded through 2030 as part of a $163 million investment, with a goal of serving more than 70,000 Maine workers.

Using Both Programs Together

For businesses that qualify for Dirigo, the Compact can function as one of the qualifying training pathways. Training approved through the Maine Workforce Development Compact meets the definition of a qualified training program under the Dirigo rules, which means an employer could use Compact-funded training to satisfy the requirements for the Dirigo worker training tax credit as well.

This requires some planning. A business should apply for Dirigo certification before any training begins and also submit its Compact funding request in advance of training. Both programs require prospective approval, so timing matters. Organizations planning a multi-year training strategy benefit from getting both certifications in place early and documenting their training investments consistently.

How The Roux Institute Supports Maine Employers

The Roux Institute at Northeastern University works with Maine employers to design and deliver training programs that meet real business needs while aligning with the requirements of programs like Dirigo and the Compact.

Training programs at the Roux Institute are built around outcomes. The approach is co-designed with each employer to incorporate company-specific projects, data, and technology, delivered as live, interactive, cohort-based learning. Published research from the institute shows that this format drives measurable behavioral change, including significantly higher rates of AI adoption in the workplace after training.

The Roux Institute offers programs in AI and data literacy, technical skills development, analytics, and leadership. Programs are designed for working professionals and can be structured to meet the training hour requirements needed for Dirigo eligibility. The institute can also support employers in thinking through a multi-year workforce strategy, identifying where training investment will have the greatest impact, and designing programs that hold up to the documentation requirements of state funding programs.

Where to Start

If you are a Maine employer exploring workforce training investment, the most important first step is to apply for the programs before committing to specific training activities. Both Dirigo and the Compact require prospective approval, and neither will cover training that has already happened.

Detailed information on both funding programs, including eligibility requirements and application processes, is available for download below. For employers interested in designing a training program that qualifies under these programs and delivers measurable results, contact the Roux Institute at [email protected].