I 
115TH CONGRESS 
1ST SESSION H. R. 4060 
To amend the Internal Revenue Code of 1986 to make residents of Puerto 
Rico eligible for the earned income tax credit and to provide for equitable 
treatment for residents of Puerto Rico with respect to the refundable 
portion of the child tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 12, 2017 
Mr. PASCRELL (for himself, Mr. CROWLEY, Mr. LARSON of Connecticut, Mr. 
SERRANO, Ms. JACKSON LEE, Ms. VELA´ZQUEZ, Ms. SA´NCHEZ, Mr. GON-
ZALEZ of Texas, Mr. BLUMENAUER, Mr. PALLONE, Ms. DELAURO, Mr. 
HIGGINS of New York, and Mr. GUTIE´RREZ) 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 and to provide for equitable treatment for 
residents of Puerto Rico with respect to the refundable 
portion of the child tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Equity and Pros-
perity for Puerto Rican Families Act of 2017’’. 
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SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED 
INCOME TAX CREDIT. 
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 (relating to earned income) is amended 
by adding at the end the following new subsection: 
‘‘(n) RESIDENTS OF PUERTO RICO.— 
‘‘(1) IN GENERAL.—In the case of residents of 
Puerto Rico— 
‘‘(A) the United States shall be treated as 
including Puerto Rico for purposes of sub-
sections (c)(1)(A)(ii)(I) and (c)(3)(C), 
‘‘(B) subsection (c)(1)(D) shall not apply 
to nonresident alien individuals who are resi-
dents of Puerto Rico, 
‘‘(C) adjusted gross income and gross in-
come shall be computed without regard to sec-
tion 933 for purposes of subsections (a)(2)(B) 
and (c)(2)(A)(i), 
‘‘(D) subsection (c)(1)(A)(ii)(II) shall be 
applied by substituting ‘age 21’ for ‘age 25’, 
and 
‘‘(E) notwithstanding subsection (b)— 
‘‘(i) the credit percentage is 40, 
‘‘(ii) the phaseout percentage is 21.06, 
‘‘(iii) the earned income amount is 
$8,890, and 
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‘‘(iv) the phaseout amount is $11,610 
(increased by $3,000 in the case of a joint 
return). 
‘‘(2) INFLATION ADJUSTMENT.—Subsection (j) 
shall apply to the dollar amounts in subparagraph 
(D), determined by treating the $8,890 and $11,610 
amounts as though such amounts were contained in 
subsection (b)(2)(A) and by treating the $3,000 
amount as though such amount were contained in 
subsection (b)(2)(B)(iii).’’. 
(b) CHILD TAX CREDIT NOT REDUCED.—Subclause 
(II) of section 24(d)(1)(B)(ii) of such Code (relating to 
child tax credit) is amended by inserting before the period 
‘‘(determined without regard to section 32(n) in the case 
of residents of Puerto Rico)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 3. EQUITABLE TREATMENT FOR RESIDENTS OF PUER-
TO RICO WITH RESPECT TO THE REFUND-
ABLE PORTION OF THE CHILD TAX CREDIT. 
(a) IN GENERAL.—Section 24(d)(1) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘or section 
933’’ after ‘‘section 112’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2016. 
Æ 
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