Earned Income Tax Credit Equity for Puerto Rico Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 105 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 JANUARY 4, 2021 Miss GONZA´LEZ-COLO´N (for herself and Mr. SOTO) 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Earned Income Tax 4 Credit Equity for Puerto Rico Act of 2021’’. 5 SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED 6 INCOME TAX CREDIT. 7 (a) IN GENERAL.—Section 32 of the Internal Rev- 8 enue Code of 1986 is amended by adding at the end the 9 following new subsection: 10 VerDate Sep 11 2014 02:06 Jan 23, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H105.IH H105 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 105 IH ‘‘(n) RESIDENTS OF PUERTO RICO.— 1 ‘‘(1) IN GENERAL.—In the case of residents of 2 Puerto Rico— 3 ‘‘(A) the United States shall be treated as 4 including Puerto Rico for purposes of sub- 5 sections (c)(1)(A)(ii)(I) and (c)(3)(C), 6 ‘‘(B) subsection (c)(1)(D) shall not apply 7 to nonresident alien individuals who are resi- 8 dents of Puerto Rico, and 9 ‘‘(C) adjusted gross income and gross in- 10 come shall be computed without regard to sec- 11 tion 933 for purposes of subsections (a)(2)(B) 12 and (c)(2)(A)(i). 13 ‘‘(2) LIMITATION.—The credit allowed under 14 this section by reason of this subsection for any tax- 15 able year shall not exceed the amount, determined 16 under regulations or other guidance promulgated by 17 the Secretary, that a similarly situated taxpayer 18 would receive if residing in a State.’’. 19 (b) CHILD TAX CREDIT NOT REDUCED.—Subclause 20 (II) of section 24(d)(1)(B)(ii) of such Code is amended 21 by inserting before the period ‘‘(determined without re- 22 gard to section 32(n) in the case of residents of Puerto 23 Rico)’’. 24 VerDate Sep 11 2014 02:06 Jan 23, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H105.IH H105 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 105 IH (c) EFFECTIVE DATE.—The amendment made shall 1 apply to taxable years beginning after December 31, 2021. 2 Æ VerDate Sep 11 2014 02:06 Jan 23, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H105.IH H105 kjohnson on DSK79L0C42PROD with BILLS