Systematic Review of Federal Tax Credit Utilization to Reduce Employment Barriers for Those Convicted of a Felony

Many of those with a criminal history are subjected to unemployment or under-employment because of their status. Being unable to secure employment or make a livable wage can produce detrimental effects on the individual and our society. To combat this issue, the U.S. government passed legislation to create federal tax credits for employers who hired those with felony convictions. Conceived as an incentive for employers to take risk and reduce barriers to employment for those with a felony conviction, the Targeted Jobs Tax Credit and Work Opportunity Tax Credit programs have been available to employers since 1977. The programs have been discussed and evaluated in peer-reviewed literature and this study is a systematic review of those findings. The study's findings suggested that the tax credit programs were underutilized by employers, but when they were used by employers the workers' program eligibility did not factor into their hiring decision. The study also identified a paradox, companies which routinely utilized the tax benefits for financial gain but were not the primary employer. Consultants and Temporary Help Service agencies had become intermediaries between the worker and employer, providing a reactive service for employers with little to no risk in the hiring decisions. As a result, those with felony convictions were not seeing improved work opportunities or gainful and sustained employment through the TJTC and WOTC programs. Although the TJTC program was found to be ineffective and was reconstructed as WOTC, the legislative intent of both programs has not produced desired results.

Grantor dc:publisher

University of Alabama Libraries

Year dc:date.issued

2023

Author dc:creator

• Smith, Larry

Advisor dc:contributor.advisor

• Clipper, Stephen

Contributors dc:contributor

• Daquin, Jane
• Cheatham, Leah

Statement dc:rights

• All rights reserved by the author unless otherwise indicated.

Language dc:language.iso

en_US, English

Dc Identifier Other

http://purl.lib.ua.edu/188357
u0015_0000001_0004876
Smith_alatus_0004M_15253

OAI identifier oai:identifier

oai:ir.ua.edu:123456789/13078