Promoting Employment of Skilled Workers and Foster Youth Act of 2021
Bill: H.R.3986 | Sponsor: Rep. Davis, Danny K. (D-IL)
Policy area: Taxation

Summary:
Promoting Employment of Skilled Workers and Foster Youth Act of 2021
This bill expands the work opportunity tax credit to (1) allow the rehiring of certain construction industry employees participating in an apprenticeship program, and (2) include qualified pre-apprenticeship graduates and foster care transition youth as targeted group members for purposes of the credit.

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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