3.0.0 364 2026-03-03T15:05:31Z 2026-03-03T15:05:31Z House H HR 2025-01-13 119 https://www.congress.gov/bill/119th-congress/house-bill/364 [Congressional Record Volume 171, Number 6 (Monday, January 13, 2025)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Ms. PLASKETT:H.R. 364.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8 of the Constitution.[Page H112]]]> hswm00 Ways and Means Committee House Standing Referred To 2025-01-13T17:01:05Z 2025-01-13 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2025-01-13 Introduced in House IntroReferral Intro-H 9 Library of Congress 2025-01-13 Introduced in House IntroReferral 1000 9 Library of Congress P000610 Del. Plaskett, Stacey E. [D-VI] Stacey Plaskett D VI E. N Taxation American Samoa 2025-04-10T19:51:33Z Caribbean area 2025-04-10T19:51:33Z Guam 2025-04-10T19:51:33Z Northern Mariana Islands 2025-04-10T19:51:33Z Puerto Rico 2025-04-10T19:51:33Z Tax administration and collection, taxpayers 2025-04-10T19:51:33Z Taxation of foreign income 2025-04-10T19:51:33Z U.S. territories and protectorates 2025-04-10T19:51:33Z Virgin Islands 2025-04-10T19:51:33Z Taxation 2025-02-14T18:11:13Z 00 2025-01-13 Introduced in House 2026-03-03T15:03:11Z Territorial Tax Equity and Economic Growth Act of 2025

This bill lowers the residency requirements and modifies the income sourcing rules related to taxation of income from U.S. territories.

Currently, bona fide residents of a U.S. territory may exclude income sourced to the territory in calculating U.S. federal income tax. A bona fide resident of a territory is a person that, in part, is present in the territory for at least 183 days in a tax year. Income is sourced to a U.S. territory if it is not U.S.-sourced income or effectively connected with a U.S. trade or business.

This bill

  • reduces the presence requirement to 122 days,
  • specifies that income is U.S.-sourced income or effectively connected to a U.S. trade or business only if attributable to an office or fixed place of business in the United States, and
  • specifies that income from U.S.-based activities that are preparatory or auxiliary may not be considered U.S.-sourced income.

Currently, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. The Internal Revenue Service (IRS) may limit the 10% tax payment requirement related to income from personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico. This bill expands the IRS’s authority to include limiting the tax requirement for personal property sales in the Virgin Islands.

]]> Territorial Tax Equity and Economic Growth Act of 2025 Display Title 45 Territorial Tax Equity and Economic Growth Act of 2025 2025-02-08T05:53:21Z Short Title(s) as Introduced 101 Territorial Tax Equity and Economic Growth Act of 2025 2025-02-08T05:53:19Z 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. 2025-02-08T05:48:26Z Introduced in House IH Introduced in House 2025-01-13T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-119hr364ih/xml/BILLS-119hr364ih.xml 2025-01-13 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.