I 
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 Mis-
sissippi, 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 Representa-
tives 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’’. 
VerDate Sep 11 2014 
02:36 Jul 24, 2021
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4367.IH
H4367
dlhill on DSK120RN23PROD with BILLS
SEC. 2. PARTIAL EXCLUSION FROM GAIN FOR INTERESTS 
IN SOCIALLY DISADVANTAGED BUSINESSES. 
(a) IN GENERAL.—Section 1201 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘SEC. 1201 PARTIAL EXCLUSION FROM GAIN FOR INTER-
ESTS IN SOCIALLY DISADVANTAGED BUSI-
NESSES. 
‘‘(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 331⁄3 
percent of the total combined voting power of all 
classes of stock or not less than 331⁄3 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 individ-
uals who were citizens of the United States, or 
‘‘(2) in the case of a partnership, at least 331⁄3 
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.— 
VerDate Sep 11 2014 
02:36 Jul 24, 2021
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4367.IH
H4367
dlhill on DSK120RN23PROD with BILLS
‘‘(1) IN
GENERAL.—A socially disadvantaged 
business may submit a joint application with an in-
vestor for an equity interest in such business held by 
such investor to be certified as a certified equity in-
terest in such manner as the Secretary determines 
appropriate. 
‘‘(2) CERTIFICATION.—The Secretary shall re-
view 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 EQ-
UITY INTEREST.—Not later than 30 days after issuing a 
certified equity interest, the issuer shall notify the Sec-
retary 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 ap-
propriate to carry out the purposes of this section. 
‘‘(f) DEFINITIONS.— 
VerDate Sep 11 2014 
02:36 Jul 24, 2021
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4367.IH
H4367
dlhill on DSK120RN23PROD with BILLS
‘‘(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 pro-
vided to such socially disadvantaged busi-
ness (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: 
VerDate Sep 11 2014 
02:36 Jul 24, 2021
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4367.IH
H4367
dlhill on DSK120RN23PROD with BILLS