I 

111TH CONGRESS 

1ST SESSION H. R. 2839 

To amend the Internal Revenue Code of 1986 to make residents of Puerto 

Rico eligible for the earned income tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 11, 2009 

Mr. PASCRELL (for himself, Mr. PIERLUISI, Mr. CROWLEY, Mrs. MALONEY, 

Mr. SIRES, Mr. MICA, and Mr. TOWNS) 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 make 

residents of Puerto Rico eligible for 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Puerto Rico Work and 

5 Empowerment Act of 2009’’. 


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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 adding 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— 

9 ‘‘(A) the United States shall be treated as 

10 including Puerto Rico for purposes of sub11 sections (c)(1)(A)(ii)(I) and (c)(3)(C), 

12 ‘‘(B) subsection (c)(1)(D) shall not apply 

13 to nonresident alien individuals who are resi14 dents of Puerto Rico, and 

15 ‘‘(C) adjusted gross income and gross in16 come shall be computed without regard to sec17 tion 933 for purposes of subsections (a)(2)(B) 

18 and (c)(2)(A)(i). 

19 ‘‘(2) LIMITATION ON CREDIT.— 

20 ‘‘(A) IN GENERAL.—The credit allowed 

21 under this section by reason of this subsection 

22 for any taxable year shall not exceed the tax23 payer’s social security taxes for such year. 

24 ‘‘(B) SOCIAL SECURITY TAXES.—For pur25 poses of subparagraph (A)— 


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1 ‘‘(i) IN GENERAL.—The term ‘social 

2 security taxes’ means, with respect to any 

3 taxpayer for any taxable year— 

4 ‘‘(I) the amount of the taxes im5 posed by sections 3101 and 3201(a) 

6 on amounts received by the taxpayer 

7 during the calendar year in which the 

8 taxable year begins, 

9 ‘‘(II) the amount of the taxes im10 posed on employers by section 3111 

11 and 3221(a) on amounts received by 

12 the taxpayer during the calendar year 

13 which the taxable year begins, 

14 ‘‘(III) the amount of the taxes 

15 imposed by section 1401 on the self16 employment income of the taxpayer 

17 for the taxable year, and 

18 ‘‘(IV) the amount of the taxes 

19 imposed by section 3211(a) on 

20 amounts received by the taxpayer dur21 ing the calendar year in which the 

22 taxable year begins. 

23 ‘‘(ii) COORDINATION WITH SPECIAL

24 REFUND OF SOCIAL SECURITY TAXES.— 

25 The term ‘social security taxes’ shall not 


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1 include any taxes to the extent the tax2 payer is entitled to a special refund of such 

3 taxes under section 6413(c). 

4 ‘‘(iii) SPECIAL RULE.—Any amounts 

5 paid pursuant to an agreement under sec6 tion 3121(l) (relating to agreements en7 tered into by American employers with re8 spect to foreign affiliates) which are equiv9 alent to the taxes imposed by sections 

10 3101 and 3111 shall be treated as such 

11 taxes for purpose of clause (i).’’. 

12 (b) CHILD TAX CREDIT NOT REDUCED.—Subclause 

13 (II) of section 24(d)(1)(B)(ii) of such Code (relating to 

14 child tax credit) is amended by inserting before the period 

15 ‘‘(determined without regard to section 32(n) in the case 

16 of residents of Puerto Rico)’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2009. 

Æ 


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