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COUNCIL OF THE DISTRICT OF COLUMBIA
OFFICE OF COUNCILMEMBER BROOKE PINTO
THE JOHN A. WILSON BUILDING
1350 PENNSYLVANIA AVENUE, N.W., SUITE 106
WASHINGTON, D.C. 20004
March 24, 2025
Nyasha Howard, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W.
Washington, DC 20004
Dear Secretary Howard,
Today, along with Councilmembers Matthew Frumin, Brianne K. Nadeau, Anita Bonds, Zachary
Parker, and Charles Allen, I am introducing the “ Helping Incentivize Returning Citizen
Employment (HIRE) Amendment Act of 2025.” This bill marks the creation of a critical initiative
designed to expand employment opportunities for returning citizens by providing financial
incentives to businesses that hire formerly incarcerated individuals. This legislation creates a
structured tax incentive program that offers employers a $5,000 tax credit annually per returning
citizen hired, helping to reduce barriers to employment and promote economic mobility for
individuals reentering society.
Employment is one of the strongest predictors of successful reentry, yet returning citizens face
disproportionate unemployment rates due to stigma and systemic hiring barriers. Nationally, the
unemployment rate for formerly incarcerated people is nearly five times higher than the general
population, with roughly 30% of returning citizens unemployed at any given time.1 Black returning
citizens face even greater obstacles, with an unemployment rate nearly double that of white
returning citizens.2
The economic impact of this exclusion is staggering. Studies estimate that the U.S. economy loses
$87 billion annually due to workforce discrimination against people with criminal records. 3 In
Washington, D.C., where more than 2,000 individuals return from federal incarceration and several
thousand more return from the Department of Corrections each year, providing employment
pathways is essential to reducing recidivism, increasing public safety, and strengthening the local
economy.4
Other jurisdictions have successfully implemented reentry hiring incentives. In Los Angeles
County, the Fair Chance Hiring Program has led to a substantial increase in employer participation,
1 Stephanie Ferguson, Makinzi Hoover, Isabella Lucy, The Workforce Impact of Second Chance Hiring, US
Chamber of Commerce, (September, 2024) available here.
2 Leah Wang. The U.S. Criminal Justice System Disproportionately Hurts Native People, Prison Policy Initiative
(October 2021), available here.
3 Cherrie Bucknor and Alan Barber, The Price We Pay: Economic Costs of Barriers to Employment for Former
Prisoners and People Convicted of Felonies, Center for economic and policy research (June 2016), available here.
4 Criminal Justice Coordinating Council, Reentry in the District of Columbia: Supporting Returning Citizens'
Transitions into the Community, available here.
resulting in reduced recidivism and higher workforce retention rates.5 Similarly, Maryland’s Prince
George’s County Re -entry Employment Incentive Program has helped businesses offset hiring
costs while providing stable employment to returning citizen s.6 This proposed legislation builds
upon these successful models by offering direct financial incentives to businesses, ensuring more
returning citizens have access to sustainable, long-term employment.
The HIRE Amendment Act of 2025 will:
• Provide employers with a $5,000 tax credit annually per returning citizen hired into a full-
time role;
• Require a minimum employment period of 90 days before an employer is eligible for a tax
credit; and
• Ensure strong oversight, with the Department of Employment Services managing
reimbursements and compliance.
Hiring returning citizens can also be a sound business investment. Research shows that hiring
employees with criminal records leads to higher retention rates and lower turnover costs, reducing
employer expenses associated with recruitment and training. 7 Additionally, businesses that hire
returning citizens qualify for federal incentives such as the Work Opportunity Tax Credit, further
maximizing financial benefits.8
By creating economic opportunities for justice -impacted individuals, this legislation supports
stronger families, safer neighborhoods, and a more inclusive workforce.
Should you have any questions about this legislation, please contact my Legislative Policy
Advisor, Anaiah Mitchell at amitchell@dccouncil.gov.
Thank you,
Brooke Pinto
Ward 2 Councilmember
Chairwoman, Committee on the Judiciary and Public Safety
Council of the District of Columbia
5 Eugene C. Ryu, Craig E. Leen, Sabrina Fani, Complying With the Los Angeles County Fair Chance Ordinance for
Employers, K&L Gates (October 2024), available here.
6 Hilton, Jasmine, Companies giving second chances to formerly incarcerated people get funding, Washington Post
(April 2024), available here.
7 Shawn Bushway, Resetting the Record, The Facts on Hiring People with Criminal Histories, RAND (January
2024), available here.
8 Jenna Shrove, Employer Guide to Second Chance Hiring Programs and Tax Credits, U.S. Chamber of Commerce
(September 2024), available here.
_____________________________ _____________________________ 1
Councilmember Matthew Frumin Councilmember Brooke Pinto 2
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Councilmember Brianne K. Nadeau Councilmember Anita Bonds 6
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Councilmember Charles Allen 10
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A BILL 12
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 16
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To establish a Re-entry Employment Incentive Program to distribute tax credits to eligible 21
businesses up to $5,000 annually for every returning citizen employed. 22
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may 24
be cited as the “Helping Incentivize Returning Citizen Employment (HIRE) Amendment 25
Act of 2025”. 26
Sec. 2. Chapter 18 of Title 47 of the District of Columbia Official Code is amended as 27
follows: 28
(a) The table of contents is amended by adding a new section designation to read as 29
follows: 30
“§ 47-1807.16. Reentry Employment Incentive Program.”. 31
(b) A new section 47-1807.16 is added to read as follows: 32
Ҥ 47-1807.16. Reentry Employment Incentive Program. 33
“(a) For taxable years beginning after December 31, 2025, there shall be allowed a credit 34
against the tax imposed by this chapter for each qualifying employee of the taxpayer for which 35
the taxpayer is allowed a deduction under section 151 of the Internal Revenue Code of 1986. 36
“(b)(1) The amount of the credit shall be calculated as follows: 37
“(A) For the taxable year beginning January 1, 2026, $5,000 annually for 38
each Qualifying Employee employed in a Qualifying Position who has continuously resided in 39
the District since release from incarceration or for the twelve months immediately preceding 40
employment in a Qualifying Position; and 41
“(B) For taxable years beginning after December 31, 2026, $5,000 for 42
each Qualifying Employee employed in a Qualifying Position who has continuously resided in 43
the District since release from incarceration or for the twelve months immediately preceding 44
employment in a Qualifying Position, increased annually pursuant to the cost-of-living 45
adjustment. 46
“(2) In the case of a return made for a fractional part of a taxable year, the credit 47
allowable under this section shall be reduced to an amount that bears the same ratio to the full 48
credit provided as the number of months in the period for which the return is made to 12 months. 49
“(3) A Qualifying Employer shall sign a Re-entry Employment Incentive 50
Agreement ("Agreement") approved by the Department of Employment Services, the Office of 51
the Attorney General, and the Office of the Chief Financial Officer prior to becoming eligible for 52
tax credits under this section. The Agreement shall: 53
“(A) Set forth the terms and conditions of eligibility and 54
“(B) Be re-submitted annually for approval as a condition for continued 55
eligibility. 56
“(c) A Qualifying Employer shall become eligible for a credit for each Qualifying 57
Position after the Qualifying Employee has completed a probationary period of ninety (90) days 58
of employment. 59
“(d) The credits distributed under this section shall be subject to the availability and 60
allocation of funds in the District budget. 61
“(e) The district shall supply the qualifying employer with a list annually of resources for 62
employment and job training support services for returning citizens hired under this bill. 63
“(f) For the purposes of this section, the term: 64
“(1) Qualifying Employee" means a District resident who: 65
“(A) Has been incarcerated for a cumulative period of six (6) months or 66
more during the five (5) years preceding employment in a Qualifying Position; 67
“(B) Has been released from incarceration within the three (3) years 68
preceding employment in a Qualifying Position; 69
“(C) Was domiciled in the District prior to their most recent period of 70
incarceration; 71
“(D) Has continuously resided in the District since release from 72
incarceration or for the twelve months immediately preceding employment in a Qualifying 73
Position. 74
“(2) "Qualifying Employer" means a commercial or nonprofit business entity 75
that: 76
“(A) Conducts business within the District of Columbia and complies 77
with all applicable federal and local laws; 78
“(B) Employs a Qualifying Employee in a Qualifying Position; and 79
“(C) Has signed and complied with a Re-entry Employment Incentive 80
Agreement in accordance with subsection (b)(3) of this section. 81
“(3) "Qualifying Position" means a position located within the District for which 82
the employer is required to pay D.C. unemployment insurance tax and in which a Qualifying 83
Employee: 84
“(A) Works a minimum of 20 hours per week; 85
“(B) Earns at least the District's minimum wage sufficient to provide adequate 86
maintenance and to protect health as referenced in Title 32 Chapter 10 (§ 32–1001 et seq) of the 87
D.C. Official Code; and 88
“(C) Is employed by a Qualifying Employer after the Qualifying Employer has 89
signed a Re-entry Employment Incentive Agreement. 90
“(4) "Incarceration" means detention in a correctional facility, home detention, 91
or under electronic monitoring following a criminal conviction.”. 92
Sec. 3. Rulemaking. 93
(a) The Mayor shall issue rules to implement the provisions of this section, including 94
rules addressing: 95
(1) Procedures for the distribution of funds under this Program; 96
(2) Requirements for reporting and oversight of Qualifying Employers; and 97
(3) Criteria for prioritizing reimbursements if Program funds are insufficient to 98
cover all eligible requests 99
(b) The proposed rules shall be submitted to the Council for a 45-day period of review, 100
excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not 101
approve or disapprove the proposed rules, by resolution, within the 45-day review period, the 102
proposed rules shall be deemed approved. 103
Sec. 4. Fiscal impact statement. 104
The Council adopts the fiscal impact statement in the committee report as the fiscal 105
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 106
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 107
Sec. 5. Effective date. 108
This act shall take effect after approval by the Mayor (or in the event of veto by the 109
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 110
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 111
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 112
Columbia Register. 113