[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4367 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4367
To amend the Internal Revenue Code of 1986 to provide a partial
exclusion from gain for interests in a socially disadvantaged business,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 6, 2021
Mr. Mfume (for himself, Mr. Cleaver, Mr. Evans, Mr. Thompson of
Mississippi, Mr. Danny K. Davis of Illinois, and Mr. Clyburn)
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 provide a partial
exclusion from gain for interests in a socially disadvantaged business,
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 ``Better Opportunity and Outcomes for
Socially Disadvantaged Talent Act of 2021'' or the ``BOOST Act of
2021''.
SEC. 2. PARTIAL EXCLUSION FROM GAIN FOR INTERESTS IN SOCIALLY
DISADVANTAGED BUSINESSES.
(a) In General.--Section 1201 of the Internal Revenue Code of 1986
is amended to read as follows:
``SEC. 1201 PARTIAL EXCLUSION FROM GAIN FOR INTERESTS IN SOCIALLY
DISADVANTAGED BUSINESSES.
``(a) Exclusion.--Gross income shall not include 50 percent of any
gain from the sale or exchange of a certified equity interest held for
more than 3 years if the taxpayer affirms that during the term of such
investment--
``(1) in the case of a corporation, not less 33\1/3\
percent of the total combined voting power of all classes of
stock or not less than 33\1/3\ percent of the total value of
shares of all classes of stock were owned, directly or through
the application of section 318, by one or more socially
disadvantaged individuals who were citizens of the United
States, or
``(2) in the case of a partnership, at least 33\1/3\
percent of the capital interest or profit interests in such
partnership were owned, directly or through the application of
section 318, by one or more socially disadvantaged individuals
who are citizens of the United States.
``(b) Application.--
``(1) In general.--A socially disadvantaged business may
submit a joint application with an investor for an equity
interest in such business held by such investor to be certified
as a certified equity interest in such manner as the Secretary
determines appropriate.
``(2) Certification.--The Secretary shall review
applications received under paragraph (1) in the order in which
such applications are received and make a determination
regarding certification with respect to an application not
later than 45 days after the date of receipt of such
application.
``(c) Notification of Issuance of Certified Equity Interest.--Not
later than 30 days after issuing a certified equity interest, the
issuer shall notify the Secretary of such issuance.
``(d) Limit on Certified Equity Interests Issued.--The Secretary
may not, in aggregate, certify more than $30,000,000,000 in total
equity interests under subsection (b)(2).
``(e) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.
``(f) Definitions.--
``(1) Certified equity interest.--The term `certified
equity interest' means an equity interest certified under
subsection (b)(2) which is originally issued--
``(A) after the date of enactment of the Better
Opportunity and Outcomes for Socially Disadvantaged
Talent Act of 2021,
``(B) not later than 60 days after the issuance of
a certification under subsection (b)(2), except that in
no case may any period in which the issuance of such
equity interest is reviewed for purposes of regulatory
approval be used to calculate such 60-day period, and
``(C) to the taxpayer--
``(i) in exchange for money or other
property, or
``(ii) as compensation for services
provided to such socially disadvantaged
business (other than service performed as an
underwriter of such interest).
``(2) Socially disadvantaged business.--The term `socially
disadvantaged business' means a domestic corporation or
partnership that meets the following requirements:
``(A) In the case of a corporation, not less 33\1/
3\ percent of the total combined voting power of all
classes of stock or not less than 33\1/3\ percent of
the total value of shares of all classes of stock are
owned, directly or through the application of section
318, by one or more socially disadvantaged individuals
who are citizens of the United States.
``(B) In the case of a partnership, at least 33\1/
3\ percent of the capital interest or profit interests
in such partnership are owned, directly or through the
application of section 318, by one or more socially
disadvantaged individuals who are citizens of the
United States.
``(C) Not less than 80 percent by value of the
assets of such business are used by such business to
conduct a trade or business.
``(3) Socially disadvantaged individual.--
``(A) In general.--The term `socially disadvantaged
individual' has the meaning given such term in section
124.103 of title 13, Code of Federal Regulations, as in
effect on the date of the enactment of this section.
``(B) Prohibition.--The Secretary may not implement
a restriction on the personal wealth, income, or total
assets of an individual for purposes of determining
whether such individual is a socially disadvantaged
individual for the purposes of this section.''.
(b) Implementing Regulations.--The Secretary of the Treasury shall,
not later than 60 days after the date of the enactment of this section,
issue regulations implementing the amendments made by this Act.
(c) Conforming Amendment.--The item relating to section 1201 in the
table of sections for part I of subchapter P of chapter 1 of subtitle A
of such Code is amended to read as follows:
``1201. Partial exclusion from gain for interests in socially
disadvantaged businesses.''.
(d) Effective Date.--The amendments made by this section shall
apply to sales on and after the date of the enactment of this section,
in taxable years ending on and after such date.
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