[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3986 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 3986
To amend the Internal Revenue Code of 1986 to improve the work
opportunity tax credit with respect to workforce development and foster
care transition youth, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 17, 2021
Mr. Danny K. Davis of Illinois (for himself, Mr. Higgins of New York,
Mr. Pascrell, Mr. Suozzi, Ms. Sewell, Mr. Larson of Connecticut, and
Mr. Kildee) 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 improve the work
opportunity tax credit with respect to workforce development and foster
care transition youth, and for other purposes.
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 ``Promoting Employment of Skilled
Workers and Foster Youth Act of 2021''.
SEC. 2. EXEMPTION FROM LIMITATION ON REPEAT EMPLOYEES.
(a) In General.--Section 51(i) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(4) Exclusion.--Paragraph (2) shall not apply to an
individual employed by an employer in any industry described by
a North American Industry Classification System code beginning
with 23, provided that such employer participates in a program
described in subsection (d)(16)(C).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2019.
SEC. 3. INCLUSION OF QUALIFIED PRE-APPRENTICESHIP GRADUATES AND FOSTER
CARE TRANSITION YOUTH FOR PURPOSES OF WORK OPPORTUNITY
CREDIT.
(a) In General.--Section 51(d) of the Internal Revenue Code of 1986
is amended--
(1) in paragraph (1), by striking ``or'' at the end of
subparagraph (I), by striking the period at the end of
subparagraph (J) and inserting a comma, and by adding at the
end the following new subparagraphs:
``(K) a qualified pre-apprenticeship graduate, or
``(L) a qualified foster care transition youth.'';
and
(2) by adding at the end the following new paragraphs:
``(16) Qualified pre-apprenticeship graduate.--
``(A) In general.--The term `qualified pre-
apprenticeship graduate' means any individual that has
completed a pre-apprenticeship program.
``(B) Pre-apprenticeship program.--For purposes of
this paragraph, the term `pre-apprenticeship program'
means with respect to a program, an initiative or set
of strategies that--
``(i) is designed to prepare participants
to enter an apprenticeship program,
``(ii) is carried out by an sponsor that
has a documented partnership with 1 or more
sponsors of apprenticeship programs, and
``(iii) includes each of the following:
``(I) Training (including a
curriculum for the training) and
theoretical education for participants
that--
``(aa) is aligned with
industry standards related to
an apprenticeship program and
reviewed and approved annually
by sponsors of the
apprenticeship program within
the documented partnership that
will prepare participants by
teaching the skills and
competencies needed to enter 1
or more apprenticeship
programs, and
``(bb) does not displace a
paid employee.
``(II) A formal agreement with a
sponsor of an apprenticeship program
that would enable participants who
successfully complete the pre-
apprenticeship program--
``(aa) to enter into the
apprenticeship program if a
place in the program is
available and if the
participant meets the
qualifications of the
apprenticeship program, and
``(bb) to earn credits
towards the apprenticeship
program.
``(C) Apprenticeship program.--For purposes of this
paragraph, the term `apprenticeship program' means an
apprenticeship program--
``(i) registered under the Act of August
16, 1937 (commonly known as the `National
Apprenticeship Act'; 50 Stat. 664, chapter 663;
29 U.S.C. 50 et seq.), and
``(ii) that complies with the requirements
of subpart A of part 29 of title 29, Code of
Federal Regulations, and part 30 of such title
(as in effect on September 30, 2020).
``(D) Special rule for application to wages paid.--
For purposes of applying this section to wages paid or
incurred to a qualified pre-apprenticeship graduate
described in subparagraph (A), an employer may not
claim the work opportunity tax credit with respect to
such pre-apprenticeship graduate unless such employer--
``(i) participates in an apprenticeship
program described in subparagraph (C), and
``(ii) hires such pre-apprenticeship
graduate for participation in such program.
``(17) 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 (42
U.S.C. 677)), after attaining the age specified in
subsection (a)(7) of such section.''.
(b) 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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