“A bill 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 expands the work opportunity tax credit (WOTC)—which provides employers a tax credit equal to 40% of up to $6,000 in an eligible employee's first-year qualified wages (i.e., $2,400 maximum)—as follows: (1) for qualified summer youth employees, by removing the prior restriction to hires between May 1 and September 15, allowing year-round hires who (A) are at least age 18 by September 16 of the hiring calendar year, (B) reside in an empowerment zone or similar area, and (C) while regularly attending secondary school, work no more than 20 hours per week from September 16 through April 30; and by increasing the maximum qualified wages to $6,000 (from $3,000), raising the maximum credit to $2,400 (from $1,200); and (2) by adding as a new targeted group "disconnected youth," defined as individuals certified as (A) age 16 to 24 who self-certify to not regularly attending school or being employed in the prior six months and lacking basic skills, or (B) age 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.