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House OKs measure to incentivize hiring ex-offenders
A House measure that would provide an incentive to hire qualified ex-offenders now heads to the Senate after the House unanimously passed House Bill 20-80 at its session last week.
Rep. Angel A. Demapan’s (R-Saipan) H.B. 20-80 obtained unanimous approval after the House passed the legislation to provide tax incentives to businesses that hire qualified ex-offenders.
The bill seeks to reward businesses who hire ex-offenders who are U.S.-eligible workers and are unemployed. These businesses may qualify for a nonrefundable credit per worker against the tax imposed on Commonwealth-sourced income, or the Northern Marianas Territorial Income Tax.
Fresh off from the committee, the bill to reward businesses with $1,500 off income taxes was later amended to $10,000 per worker in the House Ways and Means Committee, also chaired by Demapan.
Ways and Means further amended the bill to reflect that the qualified ex-offender must work with the company for at least two tax years, as opposed to the one year originally introduced by Demapan.
H.B. 20-80 also limits employers by allowing them to claim the tax credit for each qualified ex-offender for two tax years only.
The employers must first procure a certification from the Department of Corrections and offer it to the Division of Revenue and Taxation before being able to obtain the incentives.
The bill defines an ex-offender as someone who has been convicted of a felony under federal, state, or Commonwealth law and excludes offenders who would be subject for registration under the CNMI Sex Offender Register as well as offenders who are hired not more than one year after the conviction or release from prison.
