HB3418 Summary

• Creates the Securing All Futures through Equitable Reinvestment (SAFER) Communities Wage Reimbursement Pilot Program administered by the Department of Commerce and Economic Opportunity to provide wage subsidies to employers who hire formerly incarcerated individuals.

• Provides wage reimbursements of 50% of wages paid to eligible participants, or 75% if the job site is in a disproportionately impacted area, for up to 12 consecutive months per participant.

• Establishes eligibility requirements: participants must be Illinois residents, unemployed or underemployed, released from State or federal prison within 10 years, and hired as full-time employees earning at or above average wages for their occupation.

• Authorizes the Department to award grants to certified "Navigators" (nonprofits, educational institutions, and workforce agencies) to provide wage reimbursements, barrier reduction funding for transportation and childcare, and retention coaching services.

• Modifies the Illinois Income Tax Act to create two tax credits: extends the existing 5% credit for ex-offenders through 2024, and creates a new 10% credit for employers hiring ex-offenders within 10 years of release, with caps of $1,500-$5,000 per employee depending on company size.

• Repeals the pilot program effective December 31, 2029.