I 

116TH CONGRESS 

1ST SESSION H. R. 2649 

To provide for a Federal match for earned income credit expansion for 

Puerto Rico. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 9, 2019 

Mr. PASCRELL (for himself, Mr. BEYER, Mr. GRIJALVA, Mr. HIGGINS of New 

York, Mr. SOTO, Mrs. WATSON COLEMAN, Ms. VELA ́ZQUEZ, Ms. LEE of 

California, and Miss GONZA ́LEZ-COLO ́N of Puerto Rico) introduced the 

following bill; which was referred to the Committee on Natural Resources 

A BILL 

To provide for a Federal match for earned income credit 

expansion for Puerto Rico. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Equity and Pros5 perity for Puerto Rican Families Act of 2019’’. 

6 SEC. 2. EARNED INCOME CREDIT EXPANSION FOR PUERTO 

7 RICO. 

8 (a) IN GENERAL.—Subsequent to an amendment of 

9 the Puerto Rico Internal Revenue Code of 2011 expanding 


kjohnson on DSK79L0C42 with BILLS
2 

•HR 2649 IH

1 the earned income credit added by Act 257–2018 in a 

2 manner that both reduces poverty and encourages labor 

3 force participation, the Secretary of the Treasury shall 

4 make annual payments to Puerto Rico in the amount de5 termined under subsection (b). Such payments shall be 

6 made only if Puerto Rico provides to the Secretary of the 

7 Treasury— 

8 (1) a report prepared by the Secretary of the 

9 Treasury of Puerto Rico of the estimated cost of 

10 such expansion in the first year that the expanded 

11 earned income credit will be paid by Puerto Rico; 

12 and 

13 (2) annually thereafter, a report prepared by 

14 the Secretary of the Treasury of Puerto Rico of the 

15 estimated cost of such expansion in the year of the 

16 report and an updated estimate of the actual cost of 

17 such expansion in the preceding year. 

18 Puerto Rico shall submit to the Secretary the report in 

19 paragraph (1) or (2) on or after January 15 of the year 

20 in which the expanded earned income credit will be paid 

21 in Puerto Rico, and the Secretary shall make each annual 

22 payment within three weeks of receiving the report. 

23 (b) ANNUAL PAYMENT.— 

24 (1) The payment in any year shall comprise the 

25 base payment for that year and the adjustment for 


kjohnson on DSK79L0C42 with BILLS
3 

•HR 2649 IH

1 any underpayment or overpayment made in the prior 

2 year. 

3 (2) The base payment for a year shall be the 

4 estimated cost for that year under subsection (a) or 

5 $612,000,000, whichever is less. 

6 (3) The adjustment for a year shall be an in7 crease equal to any underpayment in the prior year, 

8 or a decrease equal to any overpayment in the prior 

9 year. 

10 (A) An underpayment in the prior year is 

11 the amount by which the base payment in the 

12 prior year would have been higher if the esti13 mated cost in the prior year under subsection 

14 (a) had equaled the updated estimate of the ac15 tual cost in the prior year under subsection 

16 (a)(2). 

17 (B) An overpayment in the prior year is 

18 the amount by which the base payment in the 

19 prior year would have been lower if the esti20 mated cost in the prior year under subsection 

21 (a) had equaled the updated estimate of the ac22 tual cost in the prior year under subsection 

23 (a)(2). 

24 (c) COST OF EXPANSION.—For purposes of this sec25 tion, the cost of expanding the earned income credit in 


kjohnson on DSK79L0C42 with BILLS
4 

•HR 2649 IH

1 Puerto Rico as described in subsection (a) for a year shall 

2 include only the cost of the amendments made as de3 scribed in such subsection relative to the cost of laws in 

4 effect on the date of the enactment of this Act as if those 

5 laws had remained in effect. 

6 (d) REPORTING REQUIREMENTS.—When the Sec7 retary of the Treasury of Puerto Rico submits to the Sec8 retary of the Treasury the report in subsection (a), then 

9 the Secretary of the Treasury of Puerto Rico shall submit 

10 at the same time a separate report on the application of 

11 the Puerto Rico earned income credit, including the num12 ber of beneficiaries and household composition, average 

13 benefits for different households, participation rates for el14 igible populations, error rates and other compliance mat15 ters, and the effects of the credit on labor force participa16 tion and poverty reduction. 

17 (e) OUTREACH GRANT.—In addition to the payments 

18 under subsection (a), the Secretary of the Treasury shall 

19 make a one-time grant in the amount of $5,000,000 to 

20 Puerto Rico immediately after the enactment by Puerto 

21 Rico of an expansion of its earned income credit as re22 ferred to in subsection (a), for the purpose of taxpayer 

23 education efforts relating to the earned income credit, in24 cluding education of paid tax preparers. 


kjohnson on DSK79L0C42 with BILLS
5 

•HR 2649 IH

1 (f) APPROPRIATIONS.—There are hereby appro2 priated to the Secretary of the Treasury such sums as are 

3 necessary to carry out the purposes of this section. 

4 (g) ADJUSTMENT FOR INFLATION.— 

5 (1) IN GENERAL.—For each calendar year be6 ginning after the year of the first payment made 

7 under subsection (b), the $612,000,000 amount in 

8 that subsection shall be increased by an amount 

9 equal to— 

10 (A) such dollar amount; multiplied by 

11 (B) the cost-of-living adjustment deter12 mined under section 1(f)(3) of the Internal 

13 Revenue Code of 1986, determined by sub14 stituting the calendar year preceding the year 

15 of the first payment made under subsection (b) 

16 for ‘‘2016’’ in subparagraph (A)(ii) thereof. 

17 (2) ROUNDING.—If any amount calculated 

18 under paragraph (1) is not a multiple of $500, such 

19 amount shall be rounded to the next lower multiple 

20 of $500. 

Æ 


kjohnson on DSK79L0C42 with BILLS