Bill Details
HR.2507 - 119th Congress
Status
Latest action
2025-03-31 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-03-31
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change a tax credit that helps employers hire young workers. It would expand the current youth hiring credit beyond just summer jobs, so employers could get the credit for some students who work during the school year for limited hours, and it would also add a new group called “disconnected youth.” These are young people who have been out of school and out of work for a while, or certain foster youth, if they meet the bill’s age and other requirements. The bill is meant to give employers more reason to hire young people who may have a harder time finding work.
- It would let employers claim the hiring credit for some secondary school students who work no more than 20 hours a week between September 16 and April 30, instead of limiting the credit to summer-only work.
- It would add “disconnected youth” as an eligible group for the credit. In general, this includes young people ages 16 to 24 who have not been in school or regularly employed for the last 6 months and who lack basic job skills, as well as certain foster children ages 16 to 20 who were in foster care during the last 12 months.
- To qualify as disconnected youth, the young person must be certified by a local agency and also self-certify that they meet the bill’s conditions.
- The changes would apply to people who start working for an employer after the bill becomes law.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2507 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2507
To amend the Internal Revenue Code of 1986 to modify the work
opportunity credit for certain youth employees.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 31, 2025
Ms. Kelly of Illinois introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
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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