HB1382

To Create The Reboot Pilot Program; And To Create An Income Tax Credit For Businesses That Hire Certain Former Offenders.

Failed

Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment

AI-Generated Summary

House Bill 1382 establishes 'The Reboot Pilot Program,' an initiative designed to reduce recidivism in Arkansas by incentivizing the employment of former offenders. The bill creates a state income tax credit for businesses that hire 'qualifying former offenders,' defined as individuals released from their first term of felony incarceration within the previous twelve months. To be eligible for the credit, businesses must employ these individuals for at least 40 hours per week at or above minimum wage, participate in random drug testing, and offer health insurance after two years of employment. The credit is tiered, offering $3,000 after 12 months, $2,000 after 24 months, and $1,000 after 36 months of consecutive employment. The program is limited to a maximum of 500 participants at any given time and requires quarterly reports to the legislature. The Legislative Council is tasked with reviewing the program's effectiveness within three years to determine if it should continue. The act takes effect for tax years beginning on or after January 1, 2024.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries include businesses that receive tax credits for hiring and retaining former offenders, as well as the 'qualifying former offenders' themselves, who gain access to steady employment, potential health insurance, and increased financial stability. Furthermore, the state of Arkansas and its taxpayers potentially benefit from reduced recidivism rates and the associated long-term costs of incarceration.

Who Might Suffer?

The bill does not explicitly target any group for negative impact; however, it imposes specific regulatory and administrative burdens on participating employers, such as the costs and logistics of implementing random drug testing and managing insurance enrollment. Taxpayers generally face a reduction in potential state revenue due to the provision of the income tax credits.

Read Full Bill on arkleg.state.ar.us