Incentives for Employers Hiring Formerly Incarcerated Candidates


Federal and state governments provide tax incentives for employers who hire individuals with criminal records. It is helpful for you to know about these incentives.

Two of these programs are:

Work Opportunity Tax Credit (WOTC): The federal government offers the WOTC to any employer that hires an individual within one year of their release from prison. WOTC is a $2,400 tax break to the employer for each formerly incarcerated person they hire.

Federal Bonding: Rhode Island purchases federal bonds that provide a certain type of insurance for companies that hire people with criminal records. These bonds are available for no cost to you.

You may be eligible for other tax credits or grants. OpenDoors can help you to identify and apply for financial incentives, including the two above, for which you may be eligible. For more info please call the OpenDoors Employment Program Coordinator at 401.781.5808 or email at