S.1210 - Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025 (119th Congress)
Summary
The Helping to Encourage Real Opportunities (HERO) for Youth Act of 2025 (S.1210) aims to modify and extend the work opportunity credit (WOTC) for certain youth employees. The bill targets summer youth and disconnected youth by amending the Internal Revenue Code of 1986. It seeks to expand credit eligibility for year-round employment and increase the credit amount, while also providing a credit for disconnected youth who meet specific criteria.
Expected Effects
The HERO Act is likely to incentivize businesses to hire young individuals, particularly those from disadvantaged backgrounds. This could lead to increased employment opportunities for youth and a potential reduction in unemployment rates within this demographic. The modifications to the WOTC could also simplify the hiring process for employers, making it more attractive to offer jobs to eligible youth.
Potential Benefits
- Increased employment opportunities for youth, especially disconnected youth.
- Incentivizes businesses to hire young workers through tax credits.
- Potential reduction in youth unemployment rates.
- Simplifies the hiring process for employers.
- Could lead to skill development and work experience for young individuals.
Potential Disadvantages
- Potential for employers to exploit the tax credit without providing meaningful employment.
- Administrative burden on businesses to comply with the requirements for claiming the credit.
- Possible displacement of older workers by younger, cheaper labor.
- The effectiveness of the program depends on the availability of suitable job opportunities.
- Risk of fraud or abuse in claiming the tax credit.
Constitutional Alignment
The HERO Act appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States. By incentivizing employment, the Act could promote economic stability and reduce reliance on public assistance programs. The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).