Improved Employment Outcomes for Foster Youth Act of 2016

Improved Employment Outcomes for Foster Youth Act of 2016

This bill amends the Internal Revenue Code to expand the Work Opportunity Tax Credit (WOTC) to include the hiring of qualified foster care transition youth.

(The WOTC permits employers who hire individuals who are members of a targeted group [e.g., qualified veterans, ex-felons, SSI recipients] to claim a tax credit equal to a portion of the wages paid to those individuals.)

A "qualified foster care transition youth" is any individual who is certified by the designated local agency as: (1) not having attained age 27 as of the hiring date, and (2) as having been in foster care after attaining the younger of age 16 or the age specified in provisions of the Social Security Act related to the John H. Chafee Foster Care Independence Program.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5947 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5947

   To amend the Internal Revenue Code of 1986 to include foster care 
transition youth as members of targeted groups for purposes of the work 
                          opportunity credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 7, 2016

  Mr. McDermott (for himself, Mr. Reichert, Mr. Doggett, Mr. Danny K. 
 Davis of Illinois, and Mr. Reed) introduced the following bill; which 
            was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to include foster care 
transition youth as members of targeted groups for purposes of the work 
                          opportunity credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improved Employment Outcomes for 
Foster Youth Act of 2016''.

SEC. 2. INCLUSION OF FOSTER CARE TRANSITION YOUTH FOR PURPOSES OF WORK 
              OPPORTUNITY CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (I), by 
striking the period at the end of subparagraph (J) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(K) a qualified foster care transition youth.''.
    (b) Qualified Foster Care Transition Youth Defined.--Section 51(d) 
of such Code is amended by adding at the end the following new 
paragraph:
            ``(16) Qualified foster care transition youth.--The term 
        `qualified foster care transition youth' means any individual 
        who is certified by the designated local agency as--
                    ``(A) not having attained age 27 as of the hiring 
                date, and
                    ``(B) having been in foster care (within the 
                meaning of section 477 of the Social Security Act), 
                after attaining the younger of--
                            ``(i) age 16, and
                            ``(ii) the age specified in subsection 
                        (a)(7) of such section.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to individuals who begin work for the employer after 
the date of the enactment of this Act.
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