WOTC Questions: Is there a Pennsylvania State Tax Credit for Hiring Ex-Offenders?

Is there a Pennsylvania State Tax Credit for Hiring Ex-Offenders?

At CMS, as WOTC experts and service providers since 1997, we receive a lot of questions via our website. In the case of the above question, the sender did not provide their email address, so we were unable to reply directly to them.

The WOTC Tax Credit for Ex-Felons is not limited to the State of Pennsylvania, it’s actually used throughout the United States.

According to the Department of Labor, each year more than 700,000 individuals are released from state and federal prisons. Another 9 million cycle through local jails. When reentry fails, the social and economic costs are high — more crime, more victims, more family distress, and more pressure on already-strained state and municipal budgets.

To meet the criteria for the Ex-Felon target group, the individual new hire:

  • Has been convicted of a felony; AND
  • Has a hiring date less than 1 year after the conviction OR release from prison.

For each new ex‐felon hired, the credit is 25% of qualified first‐year wages for those employed at least 120 hours, or $1,500; and 40% for those employed 400 hours or more, or $2,400.

Related Link: Reentry MythBusters

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