BOOST Act of 2021
Bill: H.R.4367 | Sponsor: Rep. Mfume, Kweisi (D-MD)
Policy area: Taxation

Summary:
Better Opportunity and Outcomes for Socially Disadvantaged Talent Act of 2021 or the BOOST Act of 2021
This bill allows an exclusion from gross income, for income tax purposes, of 50% of any gain from the sale or exchange of a certified equity interest held for more than 3 years for corporations and partnerships in which a socially disadvantaged individual who is a U.S. citizen has an ownership interest.

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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