Tax Equity and Prosperity for Puerto Rican Families Act of 2017

Bill: 115-hr-4060
Sponsor: full_name: Rep. Pascrell, Bill, Jr. [D-NJ-9]
Introduced: 2017-10-12
Policy area: Taxation
Subjects: Caribbean area

Income tax credits

Poverty and welfare assistance

Puerto Rico

Tax treatment of families

U.S. territories and protectorates

Wages and earnings
Latest action: action_date: 2017-10-12
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-10-12
action_desc: Introduced in House
text: <p><strong>Tax Equity and Prosperity for Puerto Rican Families Act of 201</strong><b>7</b></p> <p>This bill amends the Internal Revenue Code to make citizens of Puerto Rico eligible for the federal earned income tax credit and allow them to claim the refundable portion of the child tax credit on the same basis as U.S. taxpayers. In making the earned income tax credit applicable to Puerto Rican citizens, the bill modifies credit requirements to allow taxpayers in Puerto Rico to claim the credit at age 21 (rather than age 25) and to allow a credit percentage of 40, without regard to the number of qualifying children claimed by the taxpayer. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 4060 IN THE HOUSE OF REPRESENTATIVES October 12, 2017 Mr. Pascrell (for himself, Mr. Crowley , Mr. Larson of Connecticut , Mr. Serrano , Ms. Jackson Lee , Ms. Velázquez , Ms. Sánchez , Mr. Gonzalez of Texas , Mr. Blumenauer , Mr. Pallone , Ms. DeLauro , Mr. Higgins of New York , and Mr. Gutiérrez ) 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.

1. Short title This Act may be cited as the Tax Equity and Prosperity for Puerto Rican Families Act of 2017 . 2. Puerto Rico residents eligible for earned income tax credit (a) In general Section 32 of the Internal Revenue 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 subsections (c)(1)(A)(ii)(I) and (c)(3)(C), (B) subsection (c)(1)(D) shall not apply to nonresident alien individuals who are residents of Puerto Rico, (C) adjusted gross income and gross income shall be computed without regard to section 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 (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. 3. Equitable treatment for residents of Puerto Rico with respect to the refundable 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 . (b) Effective date The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2016.