H.R. 2507: Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025

This bill, titled the Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025, proposes changes to the work opportunity credit under the Internal Revenue Code, aimed at benefiting youth employees. Here’s a summary of the key aspects of the bill:

Expansion of Work Opportunity Credit

The legislation modifies the work opportunity credit to allow for:

• Year-Round Employment: The bill enables the work opportunity credit for youth employed year-round, not just during the summer months. This includes hiring youth who are regularly attending secondary school part-time during the school year.
• Increase in Credit Amount: The bill seeks to increase the amount of the credit available to employers for hiring qualified youth employees.

Inclusion of Disconnected Youth

The bill introduces provisions to extend the work opportunity credit to a new category of young individuals known as "disconnected youth." These are defined as follows:

• Youth aged 16 to 24 who are certified by a designated local agency as having not attended school or been regularly employed during the preceding six months, and who may lack essential job skills.
• Eligible foster children aged 16 to 20 who were in foster care during the year prior to their hiring date.

Effective Date

The proposed amendments will take effect for individuals who begin work for employers after the bill is enacted.

Implementation and Oversight

The bill assigns the responsibility of certifying disconnected youth to designated local agencies, which will ensure that the youth meet the criteria outlined in the legislation.

Relevant Companies

• None found