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H.R. 105: Earned Income Tax Credit Equity for Puerto Rico Act of 2021


The text of the bill below is as of Jan 4, 2021 (Introduced).


I

117th CONGRESS

1st Session

H. R. 105

IN THE HOUSE OF REPRESENTATIVES

January 4, 2021

(for herself and Mr. Soto) 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 make residents of Puerto Rico eligible for the earned income tax credit.

1.

Short title

This Act may be cited as the Earned Income Tax Credit Equity for Puerto Rico Act of 2021.

2.

Puerto Rico residents eligible for earned income tax credit

(a)

In general

Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(n)

Residents of Puerto Rico

(1)

In general

In the case of residents of Puerto Rico—

(A)

the United States shall be treated as including Puerto Rico for purposes of subsections (c)(1)(A)(ii)(I) and (c)(3)(C),

(B)

subsection (c)(1)(D) shall not apply to nonresident alien individuals who are residents of Puerto Rico, and

(C)

adjusted gross income and gross income shall be computed without regard to section 933 for purposes of subsections (a)(2)(B) and (c)(2)(A)(i).

(2)

Limitation

The credit allowed under this section by reason of this subsection for any taxable year shall not exceed the amount, determined under regulations or other guidance promulgated by the Secretary, that a similarly situated taxpayer would receive if residing in a State.

.

(b)

Child tax credit not reduced

Subclause (II) of section 24(d)(1)(B)(ii) of such Code is amended by inserting before the period (determined without regard to section 32(n) in the case of residents of Puerto Rico).

(c)

Effective date

The amendment made shall apply to taxable years beginning after December 31, 2021.