I 

114TH CONGRESS 

1ST SESSION H. R. 4309 

To amend the Internal Revenue Code of 1986 to reimburse each possession 

of the United States for the cost of the earned income tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 18, 2015 

Mr. SABLAN (for himself, Mr. PIERLUISI, Mrs. RADEWAGEN, and Ms. 

BORDALLO) 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 reimburse 

each possession of the United States for the cost of 

the earned income tax credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. REIMBURSEMENT OF POSSESSIONS FOR COST 

4 OF EARNED INCOME TAX CREDIT. 

5 (a) IN GENERAL.—Section 32 of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(n) TREATMENT OF POSSESSIONS.— 

9 ‘‘(1) PAYMENTS TO POSSESSIONS.— 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 4309 IH

1 ‘‘(A) MIRROR CODE POSSESSION.—The 

2 Secretary of the Treasury shall periodically (but 

3 not less frequently than annually) pay to each 

4 possession of the United States with a mirror 

5 code tax system amounts equal to the loss to 

6 that possession by reason of the application of 

7 this section (determined without regard to para8 graph (2)) with respect to taxable years begin9 ning after December 31, 2015. Such amounts 

10 shall be determined by the Secretary of the 

11 Treasury based on information provided by the 

12 government of the respective possession. 

13 ‘‘(B) OTHER POSSESSIONS.—The Sec14 retary of the Treasury shall periodically (but no 

15 less frequently than annually) pay to each pos16 session of the United States which does not 

17 have a mirror code tax system amounts esti18 mated by the Secretary of the Treasury as 

19 being equal to the aggregate benefits that would 

20 have been provided to residents of such posses21 sion by reason of the application of this section 

22 for taxable years beginning after December 31, 

23 2015, if a mirror code tax system had been in 

24 effect in such possession. The preceding sen25 tence shall not apply with respect to any possesVerDate Sep 11 2014 03:12 Dec 24, 2015 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4309.IH H4309

SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 4309 IH

1 sion of the United States unless such possession 

2 has a plan, which has been approved by the 

3 Secretary of the Treasury, under which such 

4 possession will promptly distribute such pay5 ments to the residents of such possession. 

6 ‘‘(2) COORDINATION WITH CREDIT ALLOWED

7 AGAINST UNITED STATES INCOME TAXES.—No cred8 it shall be allowed under this section for any taxable 

9 year to any person— 

10 ‘‘(A) to whom a credit is allowed against 

11 taxes imposed by the possession by reason of 

12 this section (determined without regard to this 

13 paragraph) for such taxable year, or 

14 ‘‘(B) who is eligible for a payment under 

15 a plan described in paragraph (1)(B) with re16 spect to such taxable year. 

17 ‘‘(3) DEFINITIONS AND SPECIAL RULES.— 

18 ‘‘(A) POSSESSION OF THE UNITED

19 STATES.—For purposes of this subsection, the 

20 term ‘possession of the United States’ includes 

21 the Commonwealth of Puerto Rico and the 

22 Commonwealth of the Northern Mariana Is23 lands. 

24 ‘‘(B) MIRROR CODE TAX SYSTEM.—For 

25 purposes of this subsection, the term ‘mirror 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 4309 IH

1 code tax system’ means, with respect to any 

2 possession of the United States, the income tax 

3 system of such possession if the income tax li4 ability of the residents of such possession under 

5 such system is determined by reference to the 

6 income tax laws of the United States as if such 

7 possession were the United States, and such 

8 system includes a tax credit substantially iden9 tical to the credit allowed under this section. 

10 ‘‘(C) TREATMENT OF PAYMENTS.—For 

11 purposes of section 1324(b)(2) of title 31, 

12 United States Code, or any similar rule of law, 

13 any payment made under this subsection shall 

14 be treated in the same manner as a refund due 

15 from the credit allowed under this section.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS