II 

108TH CONGRESS 

1ST SESSION S. 1658

To make residents of Puerto Rico eligible for the earned income tax credit, 

the refundable portion of the child tax credit, and supplemental security 

income benefits. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25, 2003

Mr. DASCHLE (for Mr. GRAHAM of Florida) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL

To make residents of Puerto Rico eligible for the earned 

income tax credit, the refundable portion of the child 

tax credit, and supplemental security income benefits.

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 ‘‘Puerto Rico Economic 

5 Stimulus Act of 2003’’. 
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1 SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED 

2 INCOME TAX CREDIT. 

3 (a) IN GENERAL.—Section 32 of the Internal Rev4 enue Code of 1986 (relating to earned income) is amended 

5 by inserting at the end the following new subsection: 

6 ‘‘(n) RESIDENTS OF PUERTO RICO.—

7 ‘‘(1) IN GENERAL.—In the case of residents of 

8 Puerto Rico, this section shall be applied—

9 ‘‘(A) by substituting ‘United States or 

10 Puerto Rico’ for ‘United States’ in subsections 

11 (c)(1)(A)(ii)(I) and (c)(3)(E), 

12 ‘‘(B) by substituting ‘nonresident alien in13 dividual (other than a resident of Puerto Rico)’ 

14 for ‘nonresident alien individual’ in subsection 

15 (c)(1)(E), and 

16 ‘‘(C) by substituting ‘gross income (com17 puted without regard to section 933)’ for ‘gross 

18 income’ in subsections (a)(2)(B) and 

19 (c)(2)(A)(i). 

20 ‘‘(2) PHASE-IN OF CREDIT.—

21 ‘‘(A) IN GENERAL.—The credit allowable 

22 under this section by reason of this subsection 

23 shall not exceed the applicable percentage of the 

24 amount of credit which would otherwise be al25 lowable under this section (without regard to 

26 this paragraph). 
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1 ‘‘(B) APPLICABLE PERCENTAGE.—The ap2 plicable percentage shall be determined as fol3 lows:

‘‘In the case of any taxable 

year beginning in—

The applicable percentage is—

2004 ......................................................................................... 10

2005 ......................................................................................... 20

2006 ......................................................................................... 30

2007 ......................................................................................... 40

2008 ......................................................................................... 50

2009 ......................................................................................... 60

2010 ......................................................................................... 70

2011 ......................................................................................... 80

2012 ......................................................................................... 90

2013 and thereafter ................................................................. 100.’’.

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2003. 

7 SEC. 3. REFUNDABLE CHILD TAX CREDIT ALLOWABLE TO 

8 RESIDENTS OF PUERTO RICO WITH LESS 

9 THAN 3 CHILDREN. 

10 (a) IN GENERAL.—Paragraph (1) of section 24(d) of 

11 the Internal Revenue Code of 1986 (relating to portion 

12 of credit refundable) is amended by inserting at the end 

13 the following new sentence: ‘‘For purposes of this para14 graph, taxable income shall be computed without regard 

15 to section 933.’’. 

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

17 subsection (a) shall apply to taxable years beginning after 

18 December 31, 2003. 

19 (c) APPLICABILITY.—
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1 (1) IN GENERAL.—Any credit allowable by rea2 son of the amendment made by subsection (a) shall 

3 not exceed the applicable percentage of the amount 

4 of credit which would otherwise be allowable under 

5 section 24(d)(1) (without regard to this subsection). 

6 (2) APPLICABLE PERCENTAGE.—The applicable 

7 percentage shall be determined as follows:

In the case of any taxable 

year beginning in—

The applicable percentage is—

2004 ......................................................................................... 10

2005 ......................................................................................... 20

2006 ......................................................................................... 30

2007 ......................................................................................... 40

2008 ......................................................................................... 50

2009 ......................................................................................... 60

2010 ......................................................................................... 70

2011 ......................................................................................... 80

2012 ......................................................................................... 90

2013 and thereafter ................................................................. 100.

8 SEC. 4. SSI TO APPLY TO RESIDENTS OF PUERTO RICO. 

9 (a) IN GENERAL.—Section 1614(e) of the Social Se10 curity Act is amended by striking ‘‘and the District of Co11 lumbia’’ and inserting ‘‘, the District of Columbia, and 

12 the Commonwealth of Puerto Rico’’. 

13 (b) APPLICATION.—Section 1611 of the Social Secu14 rity Act is amended by adding at the end the following: 

15 ‘‘Limitation on Benefits for Residents of the 

16 Commonwealth of Puerto Rico 

17 ‘‘(j) Notwithstanding any other provision of this title, 

18 in the case of an individual who is a resident of the Com19 monwealth of Puerto Rico who is eligible to receive a 
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1 monthly benefit under this title, the monthly benefits pay2 able under this title shall not exceed—

3 ‘‘(1) for each month occurring in 2004, 10 per4 cent of the monthly benefits that would, but for the 

5 application of this subsection, be paid to the indi6 vidual under this title; 

7 ‘‘(2) for each month occurring in 2005, 20 per8 cent of the monthly benefits that would, but for the 

9 application of this subsection, be paid to the indi10 vidual under this title; 

11 ‘‘(3) for each month occurring in 2006, 30 per12 cent of the monthly benefits that would, but for the 

13 application of this subsection, be paid to the indi14 vidual under this title; 

15 ‘‘(4) for each month occurring in 2007, 40 per16 cent of the monthly benefits that would, but for the 

17 application of this subsection, be paid to the indi18 vidual under this title; 

19 ‘‘(5) for each month occurring in 2008, 50 per20 cent of the monthly benefits that would, but for the 

21 application of this subsection, be paid to the indi22 vidual under this title; 

23 ‘‘(6) for each month occurring in 2009, 60 per24 cent of the monthly benefits that would, but for the 
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1 application of this subsection, be paid to the indi2 vidual under this title; 

3 ‘‘(7) for each month occurring in 2010, 70 per4 cent of the monthly benefits that would, but for the 

5 application of this subsection, be paid to the indi6 vidual under this title; 

7 ‘‘(8) for each month occurring in 2011, 80 per8 cent of the monthly benefits that would, but for the 

9 application of this subsection, be paid to the indi10 vidual under this title; and 

11 ‘‘(9) for each month occurring in 2012, 90 per12 cent of the monthly benefits that would, but for the 

13 application of this subsection, be paid to the indi14 vidual under this title.’’. 

15 (c) TERMINATION OF OTHER PROGRAMS FOR RESI16 DENTS OF PUERTO RICO.—

17 (1) TITLE I.—Title I of the Social Security Act 

18 is amended by inserting at the end the following: 

19 ‘‘TERMINATION FOR RESIDENTS OF PUERTO RICO

20 ‘‘SEC. 7. This title shall not apply to residents of the 

21 Commonwealth of Puerto Rico after 2012.’’. 

22 (2) TITLE X.—Title X of the Social Security 

23 Act is amended by inserting at the end the following: 

24 ‘‘TERMINATION FOR RESIDENTS OF PUERTO RICO

25 ‘‘SEC. 1007. This title shall not apply to residents 

26 of the Commonwealth of Puerto Rico after 2012.’’. 
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1 (3) TITLE XIV.—Title XIV of the Social Secu2 rity Act is amended by inserting at the end the fol3 lowing: 

4 ‘‘TERMINATION FOR RESIDENTS OF PUERTO RICO

5 ‘‘SEC. 1406. This title shall not apply to residents 

6 of the Commonwealth of Puerto Rico after 2012.’’. 

7 (4) TITLE XVI.—Title XVI of the Social Secu8 rity Act, as applicable with respect to the Common9 wealth of Puerto Rico before the date of the enact10 ment of this Act, shall not apply after 2012. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 subsections (a) and (b) shall apply to benefits payable in 

13 months beginning on or after January 1, 2004.

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