California AB231 proposes a tax credit for employers with fewer than five employees who hire ex-felons.

AB231 introduces a tax credit for employers with fewer than five employees who hire qualified employees, defined as those who have been convicted of a felony and have worked for the employer for at least six months within California. The credit, equal to 40% of the first-year wages up to $5,000, aims to reduce recidivism by promoting employment among recently released ex-felons. The credit is effective for taxable years beginning on or after January 1, 2026, and before January 1, 2031, after which it will be repealed.

California AB231 proposes a tax credit for employers with fewer than five employees who hire ex-felons.

AB231 introduces a tax credit for employers with fewer than five employees who hire qualified employees, defined as those who have been convicted of a felony and have worked for the employer for at least six months within California. The credit, equal to 40% of the first-year wages up to $5,000, aims to reduce recidivism by promoting employment among recently released ex-felons. The credit is effective for taxable years beginning on or after January 1, 2026, and before January 1, 2031, after which it will be repealed.