Overview
Title
To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees.
ELI5 AI
H. R. 2507 is a plan to help young people get jobs by giving businesses tax breaks when they hire them for more than just summer work. It also aims to help kids who aren't in school or working by giving extra tax breaks to businesses that hire them.
Summary AI
H. R. 2507, also known as the “Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025,” aims to change the rules around the work opportunity tax credit for youth employees in the U.S. The bill extends the credit to cover year-round employment instead of just summer jobs and increases the amount of the credit. It also introduces a tax credit for hiring "disconnected youth," defined as young people who are either not in school or not regularly employed. The changes apply to youth who start working after the bill becomes law.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
The bill titled "Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025," is designed to amend the Internal Revenue Code of 1986. Its primary aim is to modify the work opportunity tax credits available to employers who hire young employees. The proposed changes focus on expanding the existing credit to cover year-round employment for youth, increasing the credit amount, and introducing a credit specifically for hiring "disconnected youth." The bill seeks to encourage businesses to hire young individuals, especially those who might be out of school and without regular employment, thus aiming to reduce youth unemployment and integrate these individuals into the workforce.
Summary of Significant Issues
One of the main issues with the bill lies in its complexity, particularly the sections related to "disconnected youth." This term refers to young individuals who are neither in school nor regularly employed, and it requires both self-certification and certification by a designated local agency. These requirements could introduce significant administrative burdens and challenges in confirming the authenticity of claims from individuals who fall into this category.
Additionally, the bill addresses employment conditions for youth attending secondary school, which might be overly detailed and lead to misunderstandings about eligibility among employers and employees. Furthermore, the effective date of the amendments could cause confusion for employers regarding the credit's application to recently hired individuals around the enactment date.
Moreover, the bill's title, "HERO for Youth Act of 2025," while inspiring, does not detail the specific opportunities or actions it encompasses, potentially leading to ambiguity.
Impact on the Public
Broadly, the bill has the potential to positively impact youth employment by offering financial incentives to employers to hire young individuals, especially those categorized as "disconnected youth." This could lead to greater integration of these youths into the workforce, providing them with essential job skills and experiences.
However, the introduction of administrative complexities and certification requirements might discourage some employers from taking advantage of the credit, potentially reducing the bill's intended efficacy. Additionally, the ambiguity surrounding the effective date and detailed employment conditions might make it challenging for employers and employees to fully understand and utilize the benefits offered by the bill.
Impact on Specific Stakeholders
For youth, particularly those labeled as "disconnected," the bill might offer new opportunities for gaining employment and developing crucial skills that can lead to further educational or career advancements. Employers, on the other hand, could benefit from tax credits, provided they can navigate the complexities and certification processes effectively.
However, employers might face increased administrative burdens due to the certification and verification requirements, which could serve as a deterrent against hiring within these categories. Furthermore, youth trying to prove their status as "disconnected" might encounter challenges due to the need for certification, which might not be readily accessible or easy to understand.
Overall, while the bill aims to encourage youth employment and provide incentives for employers, its success might hinge on how well these issues are addressed and how clearly the processes are communicated to the involved stakeholders.
Issues
The amendment in Section 2 regarding 'disconnected youth' includes a requirement for self-certification, which may lead to challenges in verifying the authenticity of claims and complicate compliance and enforcement processes for both employers and employees.
Section 2 introduces modifications requiring certification by a designated local agency, which could introduce administrative complexity and burden for both employers and potential employees, especially for the verification and management of 'disconnected youth'.
The definition and range of individuals considered as 'disconnected youth' in Section 2 might require further clarification to avoid ambiguity in its application and to prevent potential misinterpretation by stakeholders.
The section on the amendment to employment conditions for individuals attending secondary school in Section 2 could be perceived as overly complex, with potential misunderstandings about benefits or eligibility among employers and young employees.
The effective date stipulation in Section 2 might cause confusion among employers regarding the application of amendments to their currently employed individuals if they were hired close to the enactment date.
In Section 1, the title 'Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025' is suggestive but lacks specification on the exact opportunities addressed, leading to potential ambiguity about the Act's scope and intent.
Section 1's use of the abbreviation 'HERO' could be seen as misleading or irrelevant without adequate context, leading to potential misunderstanding or confusion about what the Act entails.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the act states its name, which is the “Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025”.
2. Modification and extension of work opportunity credit for certain youth employees Read Opens in new tab
Summary AI
The section modifies tax credits related to employing certain young people. It broadens the work opportunity credit to year-round employment for youth and increases the credit amount, while also adding a credit for hiring "disconnected youth," who are young individuals not attending school or regularly employed.