LITTLE ROCK, Ark. — A bill has been filed in the Arkansas House of Representatives that would give businesses tax credits for employing people who have been incarcerated for a previous felony crime.
Republican House member Robin Lundstrum out of District 87 filed HR1024 on Monday, which defines a "qualifying former offender" as someone who has been convicted of a state or federal felony and has been incarcerated for the offense in the past year.
Last week, Governor Asa Hutchinson announced a proposal that would expand the state's prison in Calico Rock and would cost between $60 and $100 million to add nearly 500 more inmate beds.
Lundstrum's bill begins by pointing out Arkansas's high recidivism rate, a staggering 52% of prisoners in the state who were released and rearrested within three years.
"Many people recently released from incarceration receive minimal preparation for release, receiving little assistance and few resources, all of which makes it difficult for those recently released from incarceration to acclimate to society," the bill states.
The proposed Reboot Pilot Program would allow businesses that have signed up for the program to qualify for an income tax credit if they employ someone who qualifies as a "former offender."
The employee must be hired to work for at least 40 hours per week and be paid at or above the state minimum wage.
The employer qualifies for a credit of $3,000 for the first year and $2,000 when the former offender works for two consecutive years with the business, and then $1,000 for the third year of employment.
The Reboot Pilot Program also ensures that the qualified former offender is enrolled in the employer's health insurance plan after two years, with random drug tests.
If passed, the act would be effective for tax years beginning on or after January 1, 2023.
A similar bill has been introduced in the Arkansas Senate.