“To amend the Internal Revenue Code of 1986 to modify the work opportunity credit for certain youth employees.”
No CRS summary available for this bill.
This section modifies the work opportunity tax credit (WOTC)—which provides employers a tax credit equal to 40% of the first $6,000 of qualified first-year wages (maximum $2,400) paid to employees from targeted groups such as qualified veterans and recipients of family assistance—by (1) expanding the qualified summer youth employee definition to year-round hires who work no more than 20 hours per week from September 16 through April 30 while regularly attending secondary school, (2) increasing the maximum qualified wages for such employees to $6,000 (from $3,000, for a maximum credit of $2,400 from $1,200), and (3) adding as a new targeted group disconnected youth, defined as individuals certified as ages 16 to 24 who self-certify to not regularly attending school or being employed in the prior six months and lacking basic skills, or ages 16 to 20 who were eligible foster children in foster care for any part of the prior 12 months. The changes apply to individuals who begin work for the employer after the date of enactment.