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

To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees, and to extend empowerment zones. 1. Short title This Act may be cited as the Helping to Encourage Real Opportunities (HERO) for At-Risk Youth Act 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) (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), , and (C) by 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) (3) Conforming amendments (A) Subparagraph (F) of section 51(d)(1) summer (B) Paragraph (7) of section 51(d) of such Code is amended— (i) by striking summer (ii) in subparagraph (B), as redesignated by paragraph (2), by striking subparagraph (A)(iv) subparagraph (A)(ii) (iii) by striking summer (b) Credit for at-Risk youth (1) In general Paragraph (1) of section 51(d) or , or (K) an at-risk youth. . (2) At-risk youth Paragraph (14) of section 51(d) of such Code is amended to read as follows: (14) At-risk youth The term at-risk youth (A) as— (i) having attained age 16 but not age 25 on the hiring date, (ii) not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, (iii) not regularly employed during such 6-month period, and (iv) not readily employable by reason of lacking a sufficient number of basic skills, or (B) 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. 3. Extension of empowerment zones (a) In general Section 1391(d)(1)(A)(i) December 31, 2016 December 31, 2019 (b) Treatment of certain termination dates specified in nominations In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1)

Summary: Helping to Encourage Real Opportunities (HERO) for At-Risk Youth Act This bill amends the Internal Revenue Code, with respect to the work opportunity tax credit, to: change the credit for summer youth employees to a credit for youth employees who will be employed for not more than 20 hours per week during any period between September 16 and April 30 in which the individual is regularly attending any secondary school, increase the amount of the credit for youth employees, and expand the credit to include at-risk youth. An "at-risk youth" is any individual who is certified by the designated local agency as: having attained age 16 but not age 25 on the hiring date, having not regularly attended specified schools or been employed during the six-month period preceding the hiring date, and not readily employable by reason of lacking a sufficient number of basic skills. The term also includes individuals who have been certified as having attained the age of 16 but not age 21 on the hiring date and as an eligible foster child who was in foster care during the 12-month period ending on the hiring date. The bill also extends until December 31, 2019, the designation period for certain tax-favored empowerment zones.