[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1555 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1555

  To amend the Internal Revenue Code of 1986 to provide for the cover 
   over of the refundable portion of the earned income and child tax 
                credits to Guam and the Virgin Islands.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2005

    Ms. Bordallo (for herself and Mrs. Christensen) 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 provide for the cover 
   over of the refundable portion of the earned income and child tax 
                credits to Guam and the Virgin Islands.

    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 ``Insular Areas Tax Credit Act''.

SEC. 2. COVER OVER OF REFUNDABLE PORTION OF EARNED INCOME AND CHILD TAX 
              CREDITS TO GUAM AND THE VIRGIN ISLANDS.

    (a) In General.--Section 7654 of the Internal Revenue Code of 1986 
(relating to coordination of United States and certain possession 
individual income taxes) is amended by redesignating subsection (e) as 
subsection (f) and by inserting after subsection (d) the following new 
subsection:
    ``(e) Refundable Portion of Earned Income and Child Tax Credits.--
            ``(1) In general.--In addition to the amounts determined 
        under the preceding provisions of this section, with respect to 
        calendar year 2006 and each calendar year thereafter, the 
        United States shall pay an estimate of the applicable 
        refundable tax credit amount to Guam and the Virgin Islands 
        during the first 3\1/2\ months of such calendar year.
            ``(2) Adjustments; supplemental payments.--Proper 
        adjustments shall be made in amounts transferred under this 
        subsection to the extent that prior estimates of the applicable 
        refundable tax credit amount are in excess of or less than such 
        amount. In the case of an estimate which is less than the 
        applicable refundable tax credit amount, the Secretary may make 
        supplemental payments which, in the aggregate, do not exceed 
        the difference between such estimate and the applicable 
        refundable tax credit amount. Any adjustment under this 
        paragraph shall take into account any such supplemental 
        payment.
            ``(3) Applicable refundable tax credit amount.--For 
        purposes of this subsection, the term `applicable refundable 
        tax credit amount' means, with respect to Guam or the Virgin 
        Islands for any calendar year, the excess of--
                    ``(A) the aggregate refunds paid by Guam or the 
                Virgin Islands, as the case may be, to individuals with 
                respect to taxable years ending in or with the 
                preceding calendar year, over
                    ``(B) the aggregate refunds which (as determined by 
                the Secretary) would have been so paid if section 24(d) 
                did not apply and the credit allowed under section 32 
                was not refundable.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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