Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025
If passed, HB2507 would have significant implications for labor and tax policy concerning young workers. By expanding the definition of eligible youth to include those who work during the school year and introducing a specific credit for 'disconnected youth', the bill is expected to encourage a greater number of businesses to participate in hiring young individuals. This could help reduce youth unemployment rates and provide vital work experience for adolescents, further equipping them for future job opportunities.
House Bill 2507, known as the Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025, aims to amend the Internal Revenue Code to extend and modify the work opportunity credit specifically for youth employees. The bill proposes to allow tax credits for youth who will be employed year-round and makes modifications to include not just summer employment but also part-time work during the school year. This broadening of eligibility is intended to incentivize employers to hire more young people, particularly those who may struggle to find work due to lack of experience or skills.
The bill also introduces the term 'disconnected youth', which includes individuals aged 16 to 25 who have not been regularly attending school or employed for a specified period. While this change may be seen as providing necessary support to a vulnerable demographic, it raises concerns among certain advocacy groups about the potential for misuse or misunderstandings surrounding the eligibility criteria. Debate may arise over whether these tax incentives are sufficient to address the deeper systemic issues facing marginalized youth in the labor market.