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Pilot tax credit to encourage hiring former inmates fails in committee after tight vote
Summary
A proposed pilot (HB 1719) offering graduated tax credits to businesses that hire former inmates failed in committee after debate about timing and priorities; DFA estimated $0 FY22 impact and roughly $2.6 million in credits in FY23 under a 1,000-participant cap.
The committee considered House Bill 1719, a pilot program that would award businesses tax credits for hiring formerly incarcerated individuals. Representative Robin Lundstrom (joined by Brianne Davis) presented the measure, which would cap participation at 1,000 people and provide a $3,000 credit for the first year of employment, $2,000 for the second and $1,000 for the third.
DFA estimated no fiscal impact in FY22 and projected about $2.6 million in credits in FY23 under the bill's participant cap; the sponsor emphasized longer-term savings from avoided incarceration costs, citing a $30,000 per-inmate annual custody cost and Arkansasa reported recidivism rate.
Committee members praised the policy goals but debated priorities and timing amid broader tax-cut packages and RSA matters. When the motion to pass was taken with five members present, at least one 'no' vote was recorded and the motion failed; the sponsor thanked members and said she would continue to pursue the idea.
What happens next: The bill failed to pass the committee at that session; sponsors indicated they would continue to seek opportunities to advance the measure in future work or as part of other packages.
