[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1339 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1339

  To make residents of Puerto Rico eligible for the earned income tax 
                                credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2007

 Mr. Fortuno introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  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 ``Puerto Rico Economic Stimulus Act of 
2007''.

SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED INCOME TAX CREDIT.

    (a) In General.--Section 32 of the Internal Revenue Code of 1986 
(relating to earned income) is amended by inserting at the end the 
following new subsection:
    ``(n) Residents of Puerto Rico.--
            ``(1) In general.--In the case of residents of Puerto Rico, 
        this section shall be applied--
                    ``(A) by substituting `United States or Puerto 
                Rico' for `United States' in subsections 
                (c)(1)(A)(ii)(I) and (c)(3)(C),
                    ``(B) by substituting `nonresident alien individual 
                (other than a resident of Puerto Rico)' for 
                `nonresident alien individual' in subsection (c)(1)(D), 
                and
                    ``(C) by substituting `gross income (computed 
                without regard to section 933)' for `gross income' in 
                subsections (a)(2)(B) and (c)(2)(A)(i).
            ``(2) Phase-in of credit.--
                    ``(A) In general.--The credit allowable under this 
                section by reason of this subsection shall not exceed 
                the applicable percentage of the amount of credit which 
                would otherwise be allowable under this section 
                (without regard to this paragraph).
                    ``(B) Applicable percentage.--The applicable 
                percentage shall be determined as follows:

``In the case of any taxable year   The applicable percentage is--
        beginning in--
    2008..........................................                  20 
    2009..........................................                  40 
    2010..........................................                  60 
    2011..........................................                  80 
    2012 and thereafter...........................              100.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.
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