The United States Congress created two financial incentive
programs to benefit employers who hire ex-offenders. One program gives an
employer a tax break of $2,400 once an ex-offender has been hired and has
worked for a certain number of hours. The other provides fidelity insurance
bonds as an incentive to hire an ex-offender who might normally be considered
high risk by mainstream insurance companies.
The application process is simple and quick. Employers are not required to fill
Employers request fidelity bonding by
calling the State Bonding Coordinator at
312-793-1107 or a nearby IDES office. To
identify a nearby office, call
1-888-367-4382 or log on to www.ides.illinois.gov.
If an applicant meets eligibility criteria,
bonding becomes effective immediately
following certification and on the
applicant’s first day of work.
have reported that they were “on the fence” about hiring an ex-offender, but
the financial incentives “sealed the deal.”
Federal Work Opportunity Tax Credit
WOTC is a federal program that provides tax savings to employers who hire people from certain target groups, including public assistance recipients, veterans, youth and ex-felons.
The purpose of this program is to enable these individuals to gradually move from economic hardship to steady employment, while participating employers are rewarded by being able to lower their federal income tax liability. Tax credits are available from $1,200 up to $9,600 depending on the category.
For more information, visit the Illinois Department of
Employment Security web site at http://www.ides.illinois.gov/Pages/Fidelity_Bonding.aspx