Applies to offenders in custody of the state, city, or county, when the offenders perform work in a tax reduction industry to provide goods or services only (of any type) to tax-supported entities, nonprofit corporations, or private contractors. Goods produced by a tax reduction industry are used by a public agency or nonprofit corporation. Tax reduction industries provide basic work training and experience which qualify offenders for better work within the prison, jail, or in the public community. Work is performed at the prison, jail, or at a separate location.

This classification excludes work performed by offenders under a free venture enterprise contract with a private business (profit or nonprofit) which is to be reported separately in the classification applicable to the work being performed.

For administrative purposes, classification 4907 is divided into the following subclassifications: