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.
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.
{"src": "billsum_test", "title": "To amend the Internal Revenue Code of 1986 to allow a nonrefundable credit for mentoring and housing young adults."}