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Federal incentives, as of September 2026
Federal Bonding Program
The U.S. Department of Labor's Federal Bonding Program provides free fidelity bonds for job seekers whose background, including a criminal record, makes employers question hiring them. The bond covers the first six months of employment at no cost to the employer or the employee, with no deductible.
Most bonds are $5,000. A larger bond, up to $25,000, can be issued if the state bonding coordinator approves it. The applicant needs a job offer and a start date; the bond starts on the first day of work. Request it through your state's bonding coordinator.
Sources: Federal Bonding Program (bonds4jobs.com); Wisconsin DWD bonding; Montana DLI bonding.
Work Opportunity Tax Credit
Status: the IRS says the credit is available for wages paid to eligible people who began work on or before December 31, 2025. As of September 2026 we found no law extending it to people hired after that date, so do not count on it for new hires unless Congress renews it.
For reference, the credit covered a “qualified ex-felon”: a person hired within a year of a felony conviction or release from prison, up to $2,400 per hire (40 percent of the first $6,000 in wages). Form 8850 had to reach the state workforce agency within 28 days of the start date. If the credit is renewed, check the new terms first.
Source: IRS: Work Opportunity Tax Credit (page updated July 20, 2026).
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