This bill extends the tax credit for expenditures to provide access to disabled individuals to U.S. possessions and makes such credit refundable for bona fide residents of Puerto Rico.
The bill permits Puerto Rican residents a refundable tax credit for 21% of amounts otherwise allowable as a tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. It also requires payment to U.S. possessions for taxable years beginning after December 31, 2022, of an amount equal to the their losses due to the application of the credits and deductions by this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4026 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 4026
To amend the Internal Revenue Code of 1986 to allow certain credits and
deductions to be taken as a refundable tax credit by Puerto Rico
businesses or residents, and to extend such credits and deductions to
possessions of the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2023
Mrs. Gonzalez-Colon (for herself, Mr. Torres of New York, 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 allow certain credits and
deductions to be taken as a refundable tax credit by Puerto Rico
businesses or residents, and to extend such credits and deductions to
possessions of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXPENDITURES TO PROVIDE ACCESS TO DISABLED INDIVIDUALS.
(a) In General.--Section 44 of the Internal Revenue Code of 1986 is
amended by redesignating subsection (e) as subsection (f) and by
inserting after subsection (d) the following new subsection:
``(e) Application of Credit in Possessions.--
``(1) Mirror code possessions.--
``(A) In general.--The Secretary shall pay to each
possession of the United States with a mirror code tax
system amounts equal to the loss (if any) to that
possession by reason of the application of this section
(determined without regard to this subsection) with
respect to taxable years beginning after December 31,
2022. Such amounts shall be determined by the Secretary
based on information provided by the government of the
respective possession.
``(B) Mirror code tax system.--For purposes of this
paragraph, the term `mirror code tax system' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability 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.
``(2) Credit made refundable for residents of puerto
rico.--In the case of any taxable year beginning after December
31, 2022, if the taxpayer is a bona fide resident of Puerto
Rico (within the meaning of section 937(a)) or a corporation or
partnership organized in Puerto Rico or under the law of Puerto
Rico for such taxable year, the credit determined under
subsection (a) shall be allowable to such resident,
corporation, or partnership under subpart C (and not allowed
under this subpart).
``(3) American samoa.--The Secretary shall pay to American
Samoa amounts estimated by the Secretary as being equal to the
aggregate benefits that would have been provided to residents
of American Samoa by reason of the application of this section
for taxable years beginning after December 31, 2022, if the
provisions of this section had been in effect in American
Samoa. The preceding sentence shall not apply unless American
Samoa has a plan, which has been approved by the Secretary,
under which such possession will promptly distribute such
payments to its residents.
``(4) Coordination with credit allowed against united
states income taxes.--No credit shall be allowed under this
section for any taxable year to any person--
``(A) to whom a credit is allowable against taxes
imposed by a possession of the United States with a
mirror code tax system by reason of the application of
this section in such possession for such taxable year,
or
``(B) who is eligible for a payment under a plan
described in paragraph (3).
``(5) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a refund
due from credit provisions described in such section.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2022.
SEC. 2. EXPENDITURES TO REMOVE ARCHITECTURAL AND TRANSPORTATION
BARRIERS TO THE HANDICAPPED AND ELDERLY.
(a) In General.--Section 190 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsections:
``(d) Election To Take Deduction as Refundable Credit for Residents
of Puerto Rico.--In the case of a taxpayer (in the case of a joint
return, either spouse) who is a bona fide resident of Puerto Rico
(within the meaning of section 937(a)) or a corporation or partnership
organized in Puerto Rico or under the law of Puerto Rico for the
taxable year, 21 percent of the amounts otherwise allowed as a
deduction under this section shall be allowed as a credit under subpart
C.
``(e) Application of Deduction in Possessions.--
``(1) Mirror code possessions.--
``(A) In general.--The Secretary shall pay to each
possession of the United States with a mirror code tax
system amounts equal to the loss (if any) to that
possession by reason of the application of this section
(determined without regard to this subsection) with
respect to taxable years beginning after December 31,
2022. Such amounts shall be determined by the Secretary
based on information provided by the government of the
respective possession.
``(B) Mirror code tax system.--For purposes of this
paragraph, the term `mirror code tax system' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability 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.
``(2) American samoa.--The Secretary shall pay to American
Samoa amounts estimated by the Secretary as being equal to the
aggregate benefits that would have been provided to residents
of American Samoa by reason of the application of this section
for taxable years beginning after December 31, 2022, if the
provisions of this section had been in effect in American
Samoa. The preceding sentence shall not apply unless American
Samoa has a plan, which has been approved by the Secretary,
under which such possession will promptly distribute such
payments to its residents.
``(3) Coordination with credit allowed against united
states income taxes.--No deduction shall be allowed under this
section for any taxable year to any person--
``(A) to whom a credit is allowable against taxes
imposed by a possession of the United States with a
mirror code tax system by reason of the application of
this section in such possession for such taxable year,
or
``(B) who is eligible for a payment under a plan
described in paragraph (2).
``(4) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a refund
due from credit provisions described in such section.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2022.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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