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.