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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2186 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2186

     To amend the Internal Revenue Code of 1986 to cover over to a 
possession of the United States whose income tax laws mirror such Code 
 as the refundable portions of the child tax credit and earned income 
                  tax credit, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2003

    Ms. Bordallo (for herself and Mrs. Christensen) 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 cover over to a 
possession of the United States whose income tax laws mirror such Code 
 as the refundable portions of the child tax credit and earned income 
                  tax credit, 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 ``Insular Areas Tax Credit Guarantee 
Act of 2003''.

SEC. 2. COVER OVER OF REFUNDABLE PORTIONS OF CHILD TAX CREDIT AND 
              EARNED INCOME TAX CREDIT TO POSSESSIONS WHOSE INCOME TAX 
              LAWS MIRROR THE INTERNAL REVENUE CODE OF 1986.

    (a) In General.--Section 7654 of the Internal Revenue Code of 1986 
(relating to coordination of United States and certain possession 
individual income taxes) is amended by redesignating subsection (e) as 
subsection (f) and by inserting after subsection (d) the following new 
subsection:
    ``(e) Refundable Portion of Certain Credits.--
            ``(1) In general.--In addition to the amounts determined 
        under the preceding provisions of this section, the United 
        States shall pay to each mirror system possession (not less 
        often than quarterly) an amount equal to the aggregate refunds 
        paid by such possession to individuals to the extent the amount 
        of each such refund does not exceed the amount the credit 
        determined under sections 24(d) and 32. An estimate of the 
        amounts required to be paid under this subsection during any 
        calendar year shall be paid during the first 3\1/2\ months of 
        such year. Proper adjustments shall be made in the amounts 
        subsequently transferred to the extent prior estimates were in 
        excess of or less than the amounts required to be transferred.
            ``(2) Mirror system possession.--For purposes of this 
        subsection, the term `mirror system possession' means any 
        possession of the United States if the income tax laws of the 
        United States (as in effect at any one time or from time to 
        time) are used to determine income tax liability to such 
        possession as if such possession were the United States.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 3. PAYMENTS OF WITHHOLDING TAXES OF MEMBERS OF ARMED FORCES ON 
              TEMPORARY DUTY IN CERTAIN TERRITORIES.

    (a) In General.--Paragraph (1) of section 7654(d) of the Internal 
Revenue Code of 1986 (relating to Federal personnel) is amended by 
inserting ``, or who are on temporary duty, or are otherwise 
temporarily assigned or deployed, in such possession for more than 30 
days during any calendar year,'' after ``such possession''.
    (b) Timing of Payments to Possessions.--Subsection (d) of section 
7654 of such Code is amended by adding at the end the following flush 
sentences:
``An estimate of the amounts required to be paid under this subsection 
during any calendar year shall be paid during the first 3\1/2\ months 
of such year. Proper adjustments shall be made in the amounts 
subsequently transferred to the extent prior estimates were in excess 
of or less than the amounts required to be transferred.''
    (c) Effective Dates.--
            (1) Subsection (a).--The amendment made by subsection (a) 
        shall apply to amounts deducted and withheld after the date of 
        the enactment of this Act.
            (2) Subsection (b).--The amendment made by subsection (b) 
        shall apply to calendar years beginning after the date of the 
        enactment of this Act.
                                 <all>
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