Reentry Myth Busters: Work Opportunity Tax Credit

The Reentry Myth Busters are a series of fact sheets created by the partner agencies within the Federal Interagency Reentry Council's (FIRC) and intended to clarify existing federal policies that affect individuals who were formerly incarcerated and their families.

This fact sheet addresses the following:

Myth: Employers have no federal income tax advantage by hiring an ex-felon.

Fact: Employers can save money on their federal income taxes in the form of a tax credit incentive through the Work Opportunity Tax Credit (WOTC) program by hiring ex-felons. An ex-felon under WOTC is an individual who has been convicted of a felony under any statute of the United States or any State, and has a hiring date which is within one year from the date of conviction or release from prison.