H. R. 105
IN THE HOUSE OF REPRESENTATIVES
January 4, 2021
Miss González-Colón (for herself and Mr. Soto) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to make residents of Puerto Rico eligible for the earned income tax credit.
This Act may be cited as the
Earned Income Tax Credit Equity for Puerto Rico Act of 2021.
Puerto Rico residents eligible for earned income tax credit
Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Residents of Puerto Rico
In the case of residents of Puerto Rico—
the United States shall be treated as including Puerto Rico for purposes of subsections (c)(1)(A)(ii)(I) and (c)(3)(C),
subsection (c)(1)(D) shall not apply to nonresident alien individuals who are residents of Puerto Rico, and
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).
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.
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).
The amendment made shall apply to taxable years beginning after December 31, 2021.