Earned Income Tax Credit Equity for Puerto Rico Act of 2023

Earned Income Tax Credit Equity for Puerto Rico Act of 2021

This bill makes residents of Puerto Rico eligible for the federal earned income tax credit.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 257 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 257

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 10, 2023

Miss Gonzalez-Colon (for herself, Mr. Torres of New York, Mr. Soto, and 
 Mr. Moylan) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Earned Income Tax Credit Equity for 
Puerto Rico Act of 2023''.

SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED INCOME TAX CREDIT.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 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, and
                    ``(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).
            ``(2) Limitation.--The credit allowed under this section by 
        reason of this subsection for any taxable year shall not exceed 
        the amount, determined under regulations or other guidance 
        promulgated by the Secretary, that a similarly situated 
        taxpayer would receive if residing in a State.''.
    (b) Child Tax Credit Not Reduced.--Subclause (II) of section 
24(d)(1)(B)(ii) of such Code is amended by inserting before the period 
``(determined without regard to section 32(n) in the case of residents 
of Puerto Rico)''.
    (c) Termination of Annual Reimbursement for Puerto Rico Earned 
Income Tax Credit.--
            (1) In general.--Section 7530(a)(1) of such Code is amended 
        by striking ``calendar year 2021 and each calendar year 
        thereafter'' and inserting ``calendar years 2021, 2022, and 
        2023''.
            (2) Conforming amendment.--Section 7530(a)(1)(B) of such 
        Code is amended by striking ``in the case of calendar years 
        2021 through 2025, the lesser of'' and inserting ``the lesser 
        of''.
    (d) Effective Date.--The amendment made shall apply to taxable 
years beginning after December 31, 2023.
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