I 
117TH CONGRESS 
1ST SESSION H. R. 3986 
To amend the Internal Revenue Code of 1986 to improve the work oppor-
tunity 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Promoting Employ-
ment of Skilled Workers and Foster Youth Act of 2021’’. 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS
SEC. 2. EXEMPTION FROM LIMITATION ON REPEAT EM-
PLOYEES. 
(a) IN GENERAL.—Section 51(i) of the Internal Rev-
enue 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 Indus-
try Classification System code beginning with 23, 
provided that such employer participates in a pro-
gram 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 OPPOR-
TUNITY CREDIT. 
(a) IN GENERAL.—Section 51(d) of the Internal Rev-
enue 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 subpara-
graphs: 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS
‘‘(K) a qualified pre-apprenticeship grad-
uate, or 
‘‘(L) a qualified foster care transition 
youth.’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(16) QUALIFIED PRE-APPRENTICESHIP GRAD-
UATE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
pre-apprenticeship graduate’ means any indi-
vidual 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 partici-
pants 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: 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS
‘‘(I) Training (including a cur-
riculum for the training) and theo-
retical 
education 
for 
participants 
that— 
‘‘(aa) is aligned with indus-
try standards related to an ap-
prenticeship program and re-
viewed and approved annually by 
sponsors of the apprenticeship 
program within the documented 
partnership that will prepare par-
ticipants by teaching the skills 
and competencies needed to enter 
1 or more apprenticeship pro-
grams, 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-appren-
ticeship program— 
‘‘(aa) to enter into the ap-
prenticeship program if a place 
in the program is available and if 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS
the participant meets the quali-
fications of the apprenticeship 
program, and 
‘‘(bb) to earn credits to-
wards the apprenticeship pro-
gram. 
‘‘(C) 
APPRENTICESHIP
PROGRAM.—For 
purposes of this paragraph, the term ‘appren-
ticeship program’ means an apprenticeship pro-
gram— 
‘‘(i) registered under the Act of Au-
gust 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 require-
ments 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 sub-
paragraph (A), an employer may not claim the 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS
work opportunity tax credit with respect to such 
pre-apprenticeship graduate unless such em-
ployer— 
‘‘(i) participates in an apprenticeship 
program described in subparagraph (C), 
and 
‘‘(ii) hires such pre-apprenticeship 
graduate for participation in such pro-
gram. 
‘‘(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 enact-
ment of this Act. 
Æ 
VerDate Sep 11 2014 
03:54 Jul 09, 2021
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H3986.IH
H3986
kjohnson on DSK79L0C42PROD with BILLS