Federal Prison Work Incentive Act of 2008 - Amends the federal criminal code to allow reductions in the prison term of a federal prisoner whose record of conduct shows that such prisoner has substantially observed all prison regulations and has not been subjected to punishment.
Allows the Director of the Bureau of Prisons to grant a reduction in a prisoner's term for actual employment in an industry or camp or for exceptionally meritorious service or for performing duties of outstanding importance in connection with institutional operations.