I 
114TH CONGRESS 
1ST SESSION H. R. 4309 
To amend the Internal Revenue Code of 1986 to reimburse each possession 
of the United States for the cost of the earned income tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2015 
Mr. SABLAN (for himself, Mr. PIERLUISI, Mrs. RADEWAGEN, and Ms. 
BORDALLO) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to reimburse 
each possession of the United States for the cost of 
the earned income tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REIMBURSEMENT OF POSSESSIONS FOR COST 
OF EARNED INCOME TAX CREDIT. 
(a) IN GENERAL.—Section 32 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(n) TREATMENT OF POSSESSIONS.— 
‘‘(1) PAYMENTS TO POSSESSIONS.— 
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‘‘(A) MIRROR
CODE
POSSESSION.—The 
Secretary of the Treasury shall periodically (but 
not less frequently than annually) pay to each 
possession of the United States with a mirror 
code tax system amounts equal to the loss to 
that possession by reason of the application of 
this section (determined without regard to para-
graph (2)) with respect to taxable years begin-
ning after December 31, 2015. Such amounts 
shall be determined by the Secretary of the 
Treasury based on information provided by the 
government of the respective possession. 
‘‘(B) OTHER
POSSESSIONS.—The Sec-
retary of the Treasury shall periodically (but no 
less frequently than annually) pay to each pos-
session of the United States which does not 
have a mirror code tax system amounts esti-
mated by the Secretary of the Treasury as 
being equal to the aggregate benefits that would 
have been provided to residents of such posses-
sion by reason of the application of this section 
for taxable years beginning after December 31, 
2015, if a mirror code tax system had been in 
effect in such possession. The preceding sen-
tence shall not apply with respect to any posses-
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sion of the United States unless such possession 
has a plan, which has been approved by the 
Secretary of the Treasury, under which such 
possession will promptly distribute such pay-
ments to the residents of such possession. 
‘‘(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed under this section for any taxable 
year to any person— 
‘‘(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
this section (determined without regard to this 
paragraph) for such taxable year, or 
‘‘(B) who is eligible for a payment under 
a plan described in paragraph (1)(B) with re-
spect to such taxable year. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.— 
‘‘(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the 
term ‘possession of the United States’ includes 
the Commonwealth of Puerto Rico and the 
Commonwealth of the Northern Mariana Is-
lands. 
‘‘(B) MIRROR
CODE
TAX
SYSTEM.—For 
purposes of this subsection, the term ‘mirror 
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code tax system’ means, with respect to any 
possession of the United States, the income tax 
system of such possession if the income tax li-
ability of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States, and such 
system includes a tax credit substantially iden-
tical to the credit allowed under this section. 
‘‘(C) TREATMENT
OF
PAYMENTS.—For 
purposes of section 1324(b)(2) of title 31, 
United States Code, or any similar rule of law, 
any payment made under this subsection shall 
be treated in the same manner as a refund due 
from the credit allowed under this section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
Æ 
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