3.0.0 1034 2024-07-24T15:23:39Z 2024-07-24T15:23:39Z House H HR 2023-02-14 118 [Congressional Record Volume 169, Number 30 (Tuesday, February 14, 2023)][House][Pages H841-H842]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Ms. PLASKETT:H.R. 1034.[[Page H842]]Congress has the power to enact this legislation pursuantto the following:Article I, Section 8 of the U.S. Constitution.The single subject of this legislation is:Residency and income source rules in U.S. territories.]]> hswm00 Ways and Means Committee House Standing Referred to 2023-02-14T15:06:35Z Territorial Tax Parity Act of 2023 118 1036 HR 2023-02-14 Referred to the House Committee on Ways and Means. Related bill CRS Territorial Tax Parity and Clarification Act 118 1037 HR 2023-02-14 Referred to the House Committee on Ways and Means. Related bill CRS 2023-02-14 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2023-02-14 Introduced in House IntroReferral Intro-H 9 Library of Congress 2023-02-14 Introduced in House IntroReferral 1000 9 Library of Congress P000610 Del. Plaskett, Stacey E. [D-VI-At Large] Stacey Plaskett D VI E. N Taxation Taxation 2023-03-13T20:15:22Z 00 2023-02-14 Introduced in House 2023-05-23T19:55:30Z Territorial Tax Equity and Economic Growth Act of 2023

This bill modifies the residence and income source rules that apply with respect to the taxation of income from U.S. possessions (i.e., Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands).

The bill specifies that a bona fide resident of a possession must have a substantial presence in the possession for at least 122 days during the year. Under current law, the person must be present for at least 183 days during the year.

Under current law, income is not possession source income if it is treated as (1) income from sources within the United States, or (2) as effectively connected with the conduct of a trade or business within the United States. The bill amends this rule to

  • specify that it applies only to the extent that the income is attributable to an office or fixed place of business within the United States,
  • specify principles that must be used to determine whether income from sources without a possession is effectively connected with the conduct of a trade or business within the possession, and
  • prohibit income from activities within the United States which are of a preparatory or auxiliary character from being treated as income from sources within the United States or as effectively connected with the conduct of a trade or business within the United States.

The bill also modifies the income source rules that apply to certain personal property sales in the Virgin Islands.

]]> Territorial Tax Equity and Economic Growth Act of 2023 Display Title 45 Territorial Tax Equity and Economic Growth Act of 2023 2024-07-24T15:23:39Z Short Title(s) as Introduced 101 Territorial Tax Equity and Economic Growth Act of 2023 2024-05-24T13:42:14Z Introduced in House IH Official Title as Introduced 6 To amend the Internal Revenue Code of 1986 to modify the residence and source rules to provide for economic recovery in the possessions of the United States. 2024-03-18T20:20:20Z Introduced in House IH Introduced in House 2023-02-14T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-118hr1034ih/xml/BILLS-118hr1034ih.xml 2023-02-14 Referred to the House Committee on Ways and Means. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.