Bill Summary
The "Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025" aims to amend the Internal Revenue Code to enhance the Work Opportunity Credit for certain youth employees. The key provisions of the bill include:
1. **Expansion of the Work Opportunity Credit**: The bill allows for the work opportunity credit to apply to youth employed year-round, not just during the summer. Specifically, it enables students to work up to 20 hours per week during the school year (from September 16 to April 30) while still being eligible for the credit.
2. **Increase in Credit Amount**: The legislation also proposes an increase in the amount of the work opportunity credit available to employers who hire eligible youth.
3. **Inclusion of Disconnected Youth**: A new classification, "disconnected youth," is introduced, which pertains to individuals aged 16 to 25 who have not been actively engaged in school or employment for the prior six months and who may lack basic skills. This aims to provide incentives for employers to hire youths who may face barriers to employment.
4. **Effective Date**: The changes will apply to individuals who begin work after the enactment of the act.
Overall, the HERO Act seeks to promote employment opportunities for young people, particularly those who are disconnected from education and the workforce, thereby supporting their integration into the job market.
Possible Impacts
The "Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025" could affect people in several ways, including:
1. **Increased Employment Opportunities for Youth**: By expanding the work opportunity credit for youth employees, especially those who are regularly attending secondary school, the legislation could incentivize employers to hire more young people. This can lead to greater job availability for students, allowing them to gain work experience while balancing their education.
2. **Support for Disconnected Youth**: The bill specifically includes provisions for "disconnected youth," defined as individuals who are not in school or employed. By providing tax credits to employers who hire these individuals, the legislation encourages the hiring of young people who may have barriers to employment. This can help reintegrate these youths into the workforce, providing them with skills and income.
3. **Financial Benefit to Employers**: The modification and extension of the work opportunity credit means that employers may receive a larger tax credit for hiring eligible youth employees. This financial incentive can make it more feasible for businesses, especially small ones, to take on younger workers, potentially leading to a more diverse workforce and fostering a culture of mentorship within the workplace.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1210 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1210
To amend the Internal Revenue Code of 1986 to modify the work
opportunity credit for certain youth employees.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 31, 2025
Mr. Durbin (for himself and Ms. Duckworth) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the work
opportunity credit for certain youth employees.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Helping to Encourage Real
Opportunities (HERO) for Youth Act of 2025''.
SEC. 2. MODIFICATION AND EXTENSION OF WORK OPPORTUNITY CREDIT FOR
CERTAIN YOUTH EMPLOYEES.
(a) Expansion of Credit for Summer Youth.--
(1) Credit allowed for year-round employment.--Section
51(d)(7)(A) of the Internal Revenue Code of 1986 is amended--
(A) by striking clauses (i) and (iii) and
redesignating clauses (ii) and (iv) as clauses (i) and
(ii), respectively;
(B) in clause (i) (as so redesignated), by striking
``(or if later, on May 1 of the calendar year
involved),'';
(C) by striking the period at the end of clause
(ii) (as so redesignated) and inserting ``, and''; and
(D) adding at the end the following new clause:
``(iii) who will be employed for not more
than 20 hours per week during any period
between September 16 and April 30 in which such
individual is regularly attending any secondary
school.''.
(2) Increase in credit amount.--Section 51(d)(7) of the
Internal Revenue Code of 1986 is amended by striking
subparagraph (B) and by redesignating subparagraph (C) as
subparagraph (B).
(3) Conforming amendments.--
(A) Subparagraph (F) of section 51(d)(1) of the
Internal Revenue Code of 1986 is amended by striking
``summer''.
(B) Paragraph (7) of section 51(d) of such Code is
amended--
(i) by striking ``summer'' each place it
appears in subparagraphs (A);
(ii) in subparagraph (B), as redesignated
by paragraph (2), by striking ``subparagraph
(A)(iv)'' and inserting ``subparagraph
(A)(ii)''; and
(iii) by striking ``summer'' in the heading
thereof.
(b) Credit for Disconnected Youth.--
(1) In general.--Paragraph (1) of section 51(d) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at
the end of subparagraph (I), by striking the period at the end
of subparagraph (J) and inserting ``, or'', and by adding at
the end the following new subparagraph:
``(K) an disconnected youth.''.
(2) Disconnected youth.--Paragraph (14) of section 51(d) of
such Code is amended to read as follows:
``(14) Disconnected youth.--The term `disconnected youth'
means any individual who--
``(A)(i) is certified by the designated local
agency as having attained age 16 but not age 25 on the
hiring date, and
``(ii) has self-certified (on a form prescribed by
the Secretary) that such individual--
``(I) has not regularly attended any
secondary, technical, or post-secondary school
during the 6-month period preceding the hiring
date,
``(II) has not been regularly employed
during such 6-month period, and
``(III) is not readily employable by reason
of lacking a sufficient number of basic skills,
or
``(B) is certified by the designated local agency
as--
``(i) having attained age 16 but not age 21
on the hiring date, and
``(ii) an eligible foster child (as defined
in section 152(f)(1)(C)) who was in foster care
during the 12-month period ending on the hiring
date.''.
(c) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act.
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