H.R. 2507

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2507 Introduced in House (IH)]

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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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