H.R. 2507

119th CONGRESS 1st Session

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 · Sponsor: Ms. Kelly of Illinois · Committee: Committee on Ways and Means

Table of contents

• H.R. 2507
  • SEC. 1. Short title
  • SEC. 2. Modification and extension of work opportunity credit for certain youth employees

SEC. 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
    • of the Internal Revenue Code of 1986 is amended— Section 51(d)(7)(A)
      • by striking clauses (i) and (iii) and redesignating clauses (ii) and (iv) as clauses (i) and (ii), respectively;
      • in clause (i) (as so redesignated), by striking ;
      • by striking the period at the end of clause (ii) (as so redesignated) and inserting ; and
        • (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.
      • adding at the end the following new clause:
  • (2) Increase in credit amount
    • of the Internal Revenue Code of 1986 is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B). Section 51(d)(7)
  • (3) Conforming amendments
    • Subparagraph (F) of of the Internal Revenue Code of 1986 is amended by striking . section 51(d)(1)
    • Paragraph (7) of section 51(d) of such Code is amended—
      • (i) by striking 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 in the heading thereof.
• (b) Credit for disconnected youth
  • (1) In general
    • Paragraph (1) of of the Internal Revenue Code of 1986 is amended by striking 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: section 51(d)
      • an disconnected youth.
  • (2) Disconnected youth
    • (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—
        • has not regularly attended any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date,
        • has not been regularly employed during such 6-month period, and
        • is not readily employable by reason of lacking a sufficient number of basic skills, or
        • 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.
    • Paragraph (14) of section 51(d) of such Code is amended to read as follows:
• (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.