Helping to Encourage Real Opportunities (HERO) for Youth Act of 2023

To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees. 1. Short title This Act may be cited as the Helping to Encourage Real Opportunities (HERO) for Youth Act of 2023 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), (C) by striking the period at the end of clause (ii) (as so redesignated) and inserting , and (D) 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 disconnected youth (1) In general Paragraph (1) of section 51(d) or , or (K) an disconnected youth. . (2) Disconnected youth Paragraph (14) of section 51(d) of such Code is amended to read as follows: (14) Disconnected youth The term disconnected youth (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— (I) has not regularly attended any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, (II) has not been regularly employed during such 6-month period, and (III) is not readily employable by reason of lacking a sufficient number of basic skills, or (B) 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. . (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.

Summary: Helping to Encourage Real Opportunities (HERO) for Youth Act of 2023 This bill modifies the work opportunity tax credit to (1) 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 youth employee is attending any secondary school, (2) increase the amount of the credit for youth employees, and (3) expand the credit to include disconnected youth. The bill defines disconnected youth to include any individual who (1) is certified as having attained age 16 but not age 25 on the hiring date; and (2) has self-certified as not having 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 period, and is not readily employable due to a lack of basic skills. The term also includes individuals who have been certified (1) as having attained age 16 but not age 21 on the hiring date, and (2) as eligible foster children in foster care during the 12-month period ending on the hiring date.