Helping to Encourage Real Opportunities (HERO) for At-Risk Youth Act

I 116TH CONGRESS 1ST SESSION H. R. 2845 To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees, and to extend empowerment zones. IN THE HOUSE OF REPRESENTATIVES MAY 20, 2019 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, and to extend empowerment zones. 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 At-Risk Youth Act’’. 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 22:14 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2845.IH H2845 kjohnson on DSK79L0C42 with BILLS 2 •HR 2845 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),’’ and inserting ‘‘, and’’, and 9 (C) by adding at the end the following new 10 clause: 11 ‘‘(iii) who will be employed for not 12 more than 20 hours per week during any 13 period between September 16 and April 30 14 in which such individual is regularly at- 15 tending any secondary school.’’. 16 (2) INCREASE IN CREDIT AMOUNT.—Section 17 51(d)(7) of the Internal Revenue Code of 1986 is 18 amended by striking subparagraph (B) and by re- 19 designating subparagraph (C) as subparagraph (B). 20 (3) CONFORMING AMENDMENTS.— 21 (A) Subparagraph (F) of section 51(d)(1) 22 of the Internal Revenue Code of 1986 is 23 amended by striking ‘‘summer’’. 24 VerDate Sep 11 2014 22:14 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2845.IH H2845 kjohnson on DSK79L0C42 with BILLS 3 •HR 2845 IH (B) Paragraph (7) of section 51(d) of such 1 Code is amended— 2 (i) by striking ‘‘summer’’ each place it 3 appears in subparagraph (A), 4 (ii) in subparagraph (B), as redesig- 5 nated by paragraph (2), by striking ‘‘sub- 6 paragraph (A)(iv)’’ and inserting ‘‘sub- 7 paragraph (A)(ii)’’, and 8 (iii) by striking ‘‘SUMMER’’ in the 9 heading thereof. 10 (b) CREDIT FOR AT-RISK YOUTH.— 11 (1) IN GENERAL.—Paragraph (1) of section 12 51(d) of the Internal Revenue Code of 1986 is 13 amended by striking ‘‘or’’ at the end of subpara- 14 graph (I), by striking the period at the end of sub- 15 paragraph (J) and inserting ‘‘, or’’, and by adding 16 at the end the following new subparagraph: 17 ‘‘(K) an at-risk youth.’’. 18 (2) AT-RISK YOUTH.—Paragraph (14) of sec- 19 tion 51(d) of such Code is amended to read as fol- 20 lows: 21 ‘‘(14) AT-RISK YOUTH.—The term ‘at-risk 22 youth’ means any individual who is certified by the 23 designated local agency— 24 ‘‘(A) as— 25 VerDate Sep 11 2014 22:14 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2845.IH H2845 kjohnson on DSK79L0C42 with BILLS 4 •HR 2845 IH ‘‘(i) having attained age 16 but not 1 age 25 on the hiring date, 2 ‘‘(ii) not regularly attending any sec- 3 ondary, technical, or post-secondary school 4 during the 6-month period preceding the 5 hiring date, 6 ‘‘(iii) not regularly employed during 7 such 6-month period, and 8 ‘‘(iv) not readily employable by reason 9 of lacking a sufficient number of basic 10 skills, or 11 ‘‘(B) as— 12 ‘‘(i) having attained age 16 but not 13 age 21 on the hiring date, and 14 ‘‘(ii) an eligible foster child (as de- 15 fined in section 152(f)(1)(C)) who was in 16 foster care during the 12-month period 17 ending on the hiring date.’’. 18 (c) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to individuals who begin work for 20 the employer after the date of the enactment of this Act. 21 SEC. 3. EXTENSION OF EMPOWERMENT ZONES. 22 (a) IN GENERAL.—Section 1391(d)(1)(A)(i) of the 23 Internal Revenue Code of 1986 is amended by striking 24 VerDate Sep 11 2014 22:14 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2845.IH H2845 kjohnson on DSK79L0C42 with BILLS 5 •HR 2845 IH ‘‘December 31, 2017’’ and inserting ‘‘December 31, 1 2020’’. 2 (b) TREATMENT OF CERTAIN TERMINATION DATES 3 SPECIFIED IN NOMINATIONS.—In the case of a designa- 4 tion of an empowerment zone the nomination for which 5 included a termination date which is contemporaneous 6 with the date specified in subparagraph (A)(i) of section 7 1391(d)(1) of the Internal Revenue Code of 1986 (as in 8 effect before the enactment of this Act), subparagraph (B) 9 of such section shall not apply with respect to such des- 10 ignation if, after the date of the enactment of this section, 11 the entity which made such nomination amends the nomi- 12 nation to provide for a new termination date in such man- 13 ner as the Secretary of the Treasury (or the Secretary’s 14 designee) may provide. 15 Æ VerDate Sep 11 2014 22:14 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2845.IH H2845 kjohnson on DSK79L0C42 with BILLS