I
108TH CONGRESS
1ST SESSION
H. R. 2186
To amend the Internal Revenue Code of 1986 to cover over to a possession
of the United States whose income tax laws mirror such Code as the
refundable portions of the child tax credit and earned income tax credit,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 21, 2003
Ms. BORDALLO (for herself and Mrs. CHRISTENSEN) 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 cover over
to a possession of the United States whose income tax
laws mirror such Code as the refundable portions of
the child tax credit and earned income tax credit, and
for other purposes.
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 ‘‘Insular Areas Tax
Credit Guarantee Act of 2003’’.
SEC. 2. COVER OVER OF REFUNDABLE PORTIONS OF CHILD
TAX 
CREDIT 
AND 
EARNED 
INCOME 
TAX
CREDIT TO POSSESSIONS WHOSE INCOME
TAX LAWS MIRROR THE INTERNAL REVENUE
CODE OF 1986.
(a) IN GENERAL.—Section 7654 of the Internal Rev-
enue Code of 1986 (relating to coordination of United
States and certain possession individual income taxes) is
amended by redesignating subsection (e) as subsection (f)
and by inserting after subsection (d) the following new
subsection:
‘‘(e) REFUNDABLE PORTION
OF CERTAIN CRED-
ITS.—
‘‘(1) IN GENERAL.—In addition to the amounts
determined under the preceding provisions of this
section, the United States shall pay to each mirror
system possession (not less often than quarterly) an
amount equal to the aggregate refunds paid by such
possession to individuals to the extent the amount of
each such refund does not exceed the amount the
credit determined under sections 24(d) and 32. An
estimate of the amounts required to be paid under
this subsection during any calendar year shall be
paid during the first 31⁄2 months of such year. Prop-
er adjustments shall be made in the amounts subse-
quently transferred to the extent prior estimates
were in excess of or less than the amounts required
to be transferred.
‘‘(2) MIRROR SYSTEM POSSESSION.—For pur-
poses of this subsection, the term ‘mirror system
possession’ means any possession of the United
States if the income tax laws of the United States
(as in effect at any one time or from time to time)
are used to determine income tax liability to such
possession as if such possession were the United
States.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 3. PAYMENTS OF WITHHOLDING TAXES OF MEMBERS
OF ARMED FORCES ON TEMPORARY DUTY IN
CERTAIN TERRITORIES.
(a) IN GENERAL.—Paragraph (1) of section 7654(d)
of the Internal Revenue Code of 1986 (relating to Federal
personnel) is amended by inserting ‘‘, or who are on tem-
porary duty, or are otherwise temporarily assigned or de-
ployed, in such possession for more than 30 days during
any calendar year,’’ after ‘‘such possession’’.
(b) TIMING OF PAYMENTS TO POSSESSIONS.—Sub-
section (d) of section 7654 of such Code is amended by
adding at the end the following flush sentences:
‘‘An estimate of the amounts required to be paid under
this subsection during any calendar year shall be paid dur-
ing the first 31⁄2 months of such year. Proper adjustments
shall be made in the amounts subsequently transferred to
the extent prior estimates were in excess of or less than
the amounts required to be transferred.’’
(c) EFFECTIVE DATES.—
(1) SUBSECTION (a).—The amendment made by
subsection (a) shall apply to amounts deducted and
withheld after the date of the enactment of this Act.
(2) SUBSECTION (b).—The amendment made by
subsection (b) shall apply to calendar years begin-
ning after the date of the enactment of this Act.
Æ