Tax credits are coveted by small business owners across the country, but one new tax credit, benefitting both employer and employee, is hardly criminal.
"The city of Philadelphia is making a concerted effort to encourage the hiring of ex-convicts amid a renewed interest nationwide in dealing with high recidivism, growing crime rates and exploding prison populations," according to the Associated Press. "On his 100th day in office last month, Mayor Michael Nutter announced a program, being headed by an ex-offender, that gives $10,000 a year in municipal tax credits to companies that hire former prisoners and provide them tuition support or vocational training."
The tax credit is good for up to three years; Philadelphia has earmarked money for at least 500 potential new employees under the tax credit program.
Nearly two out of three inmates are arrested again within three years of release
Some businesses are not eligible for the tax credit; these businesses include child care centers and banks, which are not allowed to hire those who have been released from prison. Often, this is out of concerns about recidivism.
Recidivism, or a relapse into a prior behavior, is a problem in the U.S.; federal statistics show that nearly two out of three inmates released from state or federal prisons are arrested again within just three years. In addition to high recidivism, high crime rates are also a problem in many parts of the country.
According to a report released in February by the Pew Center on the States' Public Safety Performance Project, for the first time in U.S. history, more than one of every 100 adults is in jail or prison. The recidivism rate nationwide remains steady and high, according to the report: about half of released inmates return to jail or prison within three years.
With the percentage of American adults in jail or prison higher than ever before, that means that more companies are going to have to open their minds to hiring employees with criminal records. While many might not want to consider doing so, the fact remains that the cost of housing inmates is high. Philadelphia spends $30,000 annually to house more than 9,000 inmates, according to the AP. By employing former criminals, businesses can help to keep the jails and prisons less full and the streets more safe.
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"The scope of the ex-offender problem in Philadelphia was detailed in a report last fall that showed about 40,000 former inmates return to the city annually from federal, state and local incarceration," according to the AP. "At any given time, according to the study by the University of Pennsylvania's School of Social Policy and Practice, the city of 1.4 million is home to 200,000 to 400,000 ex-cons, many in need of not only jobs but also education, health care and addiction counseling."
The demand for resources has prompted some policy action from the federal government.
"In April, President Bush signed the 'Second Chance Act,' which authorizes more than $330 million over two years to help government agencies and nonprofit groups lower recidivism," according to the AP.
"Additionally, the Second Chance Act enhances drug treatment, mentoring, and transitional services for ex-offenders through partnerships with local corrections agencies and faith-based and community organizations," according to a White House fact sheet issued about the Second Chance Act.
The Second Chance Act stems from the Prisoner Reentry Initiative (PRI) proposed by President Bush during his 2004 State of the Union address. "In the first two years of [PRI], more than 12,800 offenders have enrolled in the prisoner reentry program. More than 7,900 offenders have been placed in jobs. Only 18 percent of those enrolled in the program have been arrested again within one year," according to a White House fact sheet.
Many cities and states around the country already have agencies devoted to rehabilitating former criminals and helping to reduce the rates of recidivism, as well as working on worker reentry policy.
Philadelphia's prison system and the mayor's office are working together to start planning worker reentry in advance, as soon as the criminals are sentenced. Their hope is to find more matches with businesses this way, and to help more criminals make a more seamless transition to ex-criminals, and to strengthen the community by diminishing the number of repeat offenders.
