[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 105 Introduced in House (IH)]

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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.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2021

Miss Gonzalez-Colon (for herself and Mr. Soto) introduced the following 
      bill; which was referred to the Committee on Ways and Means

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                                 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 2021''.

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) Effective Date.--The amendment made shall apply to taxable 
years beginning after December 31, 2021.
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