Helping to Encourage Real Opportunities (HERO) for Youth Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3107 To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees. IN THE HOUSE OF REPRESENTATIVES MAY 11, 2021 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Helping to Encourage 4 Real Opportunities (HERO) for Youth Act of 2021’’. 5 SEC. 2. MODIFICATION AND EXTENSION OF WORK OPPOR- 6 TUNITY CREDIT FOR CERTAIN YOUTH EM- 7 PLOYEES. 8 (a) EXPANSION OF CREDIT FOR SUMMER YOUTH.— 9 VerDate Sep 11 2014 23:52 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3107.IH H3107 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3107 IH (1) CREDIT ALLOWED FOR YEAR-ROUND EM- 1 PLOYMENT.—Section 51(d)(7)(A) of the Internal 2 Revenue Code of 1986 is amended— 3 (A) by striking clauses (i) and (iii) and re- 4 designating clauses (ii) and (iv) as clauses (i) 5 and (ii), respectively; 6 (B) in clause (i) (as so redesignated), by 7 striking ‘‘(or if later, on May 1 of the calendar 8 year involved),’’; 9 (C) by striking the period at the end of 10 clause (ii) (as so redesignated) and inserting ‘‘, 11 and’’; and 12 (D) adding at the end the following new 13 clause: 14 ‘‘(iii) who will be employed for not 15 more than 20 hours per week during any 16 period between September 16 and April 30 17 in which such individual is regularly at- 18 tending any secondary school.’’. 19 (2) INCREASE IN CREDIT AMOUNT.—Section 20 51(d)(7) of the Internal Revenue Code of 1986 is 21 amended by striking subparagraph (B) and by re- 22 designating subparagraph (C) as subparagraph (B). 23 (3) CONFORMING AMENDMENTS.— 24 VerDate Sep 11 2014 23:52 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3107.IH H3107 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3107 IH (A) Subparagraph (F) of section 51(d)(1) 1 of the Internal Revenue Code of 1986 is 2 amended by striking ‘‘summer’’. 3 (B) Paragraph (7) of section 51(d) of such 4 Code is amended— 5 (i) by striking ‘‘summer’’ each place it 6 appears in subparagraphs (A); 7 (ii) in subparagraph (B), as redesig- 8 nated by paragraph (2), by striking ‘‘sub- 9 paragraph (A)(iv)’’ and inserting ‘‘sub- 10 paragraph (A)(ii)’’; and 11 (iii) by striking ‘‘SUMMER’’ in the 12 heading thereof. 13 (b) CREDIT FOR DISCONNECTED YOUTH.— 14 (1) IN GENERAL.—Paragraph (1) of section 15 51(d) of the Internal Revenue Code of 1986 is 16 amended by striking ‘‘or’’ at the end of subpara- 17 graph (I), by striking the period at the end of sub- 18 paragraph (J) and inserting ‘‘, or’’ , and by adding 19 at the end the following new subparagraph: 20 ‘‘(K) an disconnected youth.’’. 21 (2) DISCONNECTED YOUTH.—Paragraph (14) 22 of section 51(d) of such Code is amended to read as 23 follows: 24 VerDate Sep 11 2014 23:52 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3107.IH H3107 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3107 IH ‘‘(14) DISCONNECTED YOUTH.—The term ‘dis- 1 connected youth’ means any individual who— 2 ‘‘(A)(i) is certified by the designated local 3 agency as having attained age 16 but not age 4 25 on the hiring date, and 5 ‘‘(ii) has self-certified (on a form pre- 6 scribed by the Secretary) that such individual— 7 ‘‘(I) has not regularly attended any 8 secondary, technical, or post-secondary 9 school during the 6-month period pre- 10 ceding the hiring date, 11 ‘‘(II) has not been regularly employed 12 during such 6-month period, and 13 ‘‘(III) is not readily employable by 14 reason of lacking a sufficient number of 15 basic skills, or 16 ‘‘(B) is certified by the designated local 17 agency as— 18 ‘‘(i) having attained age 16 but not 19 age 21 on the hiring date, and 20 ‘‘(ii) an eligible foster child (as de- 21 fined in section 152(f)(1)(C)) who was in 22 foster care during the 12-month period 23 ending on the hiring date.’’. 24 VerDate Sep 11 2014 23:52 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3107.IH H3107 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3107 IH (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to individuals who begin work for 2 the employer after the date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 23:52 Jun 10, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3107.IH H3107 kjohnson on DSK79L0C42PROD with BILLS