text: SECTION 1. NONREFUNDABLE CREDIT FOR MENTORING AND HOUSING YOUNG ADULTS.
  
      (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 is amended by inserting after 
  section 25D the following new section:
  
  ``SEC. 25E. MENTORING AND HOUSING CERTAIN YOUNG ADULTS.
  
      ``(a) Allowance of Credit.--In the case of a taxpayer who is a 
  qualified mentor, there shall be allowed as a credit against the tax 
  imposed by this chapter for the taxable year with respect to each 
  qualifying mentored individual by the taxpayer an amount equal to 
  $1,000.
      ``(b) Limitations.--
              ``(1) Proration of credit for years in which individual 
          attains age 18 and 21.--In the case of a qualifying mentored 
          individual who attains age 18 or 21 during the taxable year, 
          the credit allowed under subsection (a) shall be the amount 
          specified in subsection (a) multiplied by a fraction, the 
          numerator of which is the number of days in the taxable year 
          such individual is 18 or 20 (as the case may be) and the 
          denominator of which is the number of days in the taxable year.
              ``(2) Limitation based on amount of tax.--In the case of a 
          taxable year to which section 26(a)(2) does not apply, the 
          credit allowed under subsection (a) for any taxable year shall 
          not exceed the excess of--
                      ``(A) the sum of the regular tax liability (as 
                  defined in section 26(b)) plus the tax imposed by 
                  section 55, over
                      ``(B) the sum of the credits allowable under this 
                  subpart (other than this section) and section 27 for 
                  the taxable year.
      ``(c) Definitions.--For purposes of this section--
              ``(1) Qualified mentor.--The term `qualified mentor' means 
          an individual--
                      ``(A) who attained the age of 21 before the 
                  beginning of the taxable year,
                      ``(B) with respect to whom any agency certified by 
                  the State (including a private mentoring agency and 
                  governmental mentoring agency) in which the taxpayer 
                  has his principle place of abode to provide or 
                  facilitate mentoring services has placed a qualifying 
                  mentored individual, and
                      ``(C) who is in compliance with the mentoring 
                  requirements of such agency or State with respect to 
                  the qualifying mentored individual.
              ``(2) Mentoring requirements.--The term `mentoring 
          requirements' includes participating in a one-on-one 
          relationship as a positive role model with a qualifying 
          mentored individual and involves meetings and activities on not 
          less than a monthly basis.
              ``(3) Qualifying mentored individual.--The term `qualifying 
          mentored individual' means an individual who--
                      ``(A) has attained the age of 18 as of the close of 
                  the taxable year but did not attain age 22 during the 
                  taxable year,
                      ``(B) as of the day before the date on which the 
                  individual attained the age of 18, was placed by an 
                  authorized placement agency or by judgment, decree, or 
                  other order of any court of competent jurisdiction, and
                      ``(C) has the same principal place of abode as the 
                  taxpayer for more than one-half of such taxable year.
      ``(d) Identification Requirement.--No credit shall be allowed under 
  this section to a taxpayer with respect to a qualifying mentored 
  individual unless the taxpayer includes the name and taxpayer 
  identification number of such qualifying mentored individual on the 
  return of tax for the taxable year.
      ``(e) Taxable Year Must Be Full Taxable Year.--Except in the case 
  of a taxable year closed by reason of the death of the taxpayer, no 
  credit shall be allowable under this section in the case of a taxable 
  year covering a period of less than 12 months.''.
      (b) Conforming Amendments.--
              (1) Section 23(b)(4)(B) of such Code is amended by striking 
          ``section 25D'' and inserting ``sections 25D and 25E''.
              (2) Section 24(b)(3)(B) of such Code is amended by 
          inserting ``25E,'' after ``25D,''.
              (3) Section 25B(g)(2) of such Code is amended by inserting 
          ``25E,'' after ``25D,''.
              (4) Section 25D(c)(1)(B) of such Code is amended by 
          inserting ``and section 25E'' after ``this section''.
              (5) Section 26(a)(1) of such Code is amended by inserting 
          ``25E,'' after ``25D,''.
              (6) Section 30(c)(2)(B)(ii) of such Code is amended by 
          inserting ``25E,'' after ``25D,''.
              (7) Section 30B(i)(2)(B)(ii) of such Code is amended by 
          inserting ``25E,'' after ``25D,''.
              (8) Section 30D(d)(2)(B)(ii) of such Code is amended by 
          striking ``23 and 25D'' and inserting ``23, 25D, and 25E''.
      (c) Clerical Amendment.--The table of sections for subpart A of 
  part IV of subchapter A of chapter 1 of such Code is amended by 
  inserting after the item relating to section 25D the following new 
  item:
  
  ``Sec. 25E. Mentoring and housing certain young adults.''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after the date of the enactment of 
  this Act.
target: Amends the Internal Revenue Code to allow a tax credit to individuals who provide mentoring services to young adults between the ages of 18 and 22. Requires such individuals to participate in a one-on-one relationship as a positive role model with such young adults and to conduct meetings and activities with them on not less than a monthly basis.
feat_title: To amend the Internal Revenue Code of 1986 to allow a nonrefundable credit for mentoring and housing young adults.