Reduced Workers’ Compensation Insurance Rates
Prior to commencing the joint venture program, the Joint Venture Program (JVP) employer provides a written quote for all incarcerated individual job positions. The JVP will discount this quote by 50%. Employers will be billed by the California Department of Corrections and Rehabilitation (CDCR) each quarter for Workers’ Compensation Insurance.
State Tax Credit
California allows a credit equal to 10% of the wages paid to each prisoner who is employed under an approved joint venture with CDCR. To claim the tax credit, JVP employers must complete the California Form 3507 , Prison Inmate Labor Credit. The credit amount is based on wages paid to each qualifying employee during the taxable year for the duration of the contract agreement. The credit applies only to wages paid pursuant to a contract agreement, between CDCR and the joint venture employer, executed on or before the day the individual begins work for the employer.
No Employment Benefits
JVP employers do not pay employee benefits (e.g., medical, vacation, sick leave, pension, etc.). The average savings can amount to 35% of total payroll costs.
No Cost Lease
In return for employing offenders, the State of California privides no cost long-term leases for buildings and land.