Helping to Encourage Real Opportunities (HERO) for Youth Act of 2023
Impact
The bill's modification of the work opportunity credit is poised to significantly impact youth employment rates by providing employers with a more attractive incentive to hire younger workers. By allowing credits for positions held outside the traditional summer work period and specifically including those who have not been regularly employed or who have dropped out of school, the HERO Act aims to create pathways for economic participation among disconnected youth. This will potentially reduce unemployment rates in this demographic, fostering greater community engagement and productivity.
Summary
House Bill 2841, known as the Helping to Encourage Real Opportunities (HERO) for Youth Act of 2023, aims to amend the Internal Revenue Code of 1986, specifically to enhance the work opportunity credit for certain young employees. The bill proposes to modify existing provisions to allow for more inclusive tax credits that benefit both employers and youth aged 16 to 25. This new legislation extends the opportunity for year-round employment and expands the definition of eligible youth to include 'disconnected youth', who face barriers to employment due to lack of skills or education.
Contention
While the bill has garnered support as a measure to facilitate youth employment, there are discussions around its implementation and effectiveness. Some stakeholders express concern regarding the bureaucratic processes involved in certifying disconnected youth, suggesting that such requirements could create barriers that counteract the bill's intent. Additionally, critics argue that financial assistance should also be coupled with effective job training and skill development programs to maximize the impact of the work opportunity credit on securing sustainable employment for young individuals.