[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4026 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4026

To amend the Internal Revenue Code of 1986 to allow certain credits and 
   deductions to be taken as a refundable tax credit by Puerto Rico 
 businesses or residents, and to extend such credits and deductions to 
                   possessions of the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2023

   Mrs. Gonzalez-Colon (for herself, Mr. Torres of New York, and Mr. 
   Moylan) 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 allow certain credits and 
   deductions to be taken as a refundable tax credit by Puerto Rico 
 businesses or residents, and to extend such credits and deductions to 
                   possessions of the United States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXPENDITURES TO PROVIDE ACCESS TO DISABLED INDIVIDUALS.

    (a) In General.--Section 44 of the Internal Revenue Code of 1986 is 
amended by redesignating subsection (e) as subsection (f) and by 
inserting after subsection (d) the following new subsection:
    ``(e) Application of Credit in Possessions.--
            ``(1) Mirror code possessions.--
                    ``(A) In general.--The Secretary shall pay to each 
                possession of the United States with a mirror code tax 
                system amounts equal to the loss (if any) to that 
                possession by reason of the application of this section 
                (determined without regard to this subsection) with 
                respect to taxable years beginning after December 31, 
                2022. Such amounts shall be determined by the Secretary 
                based on information provided by the government of the 
                respective possession.
                    ``(B) Mirror code tax system.--For purposes of this 
                paragraph, the term `mirror code tax system' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
            ``(2) Credit made refundable for residents of puerto 
        rico.--In the case of any taxable year beginning after December 
        31, 2022, if the taxpayer is a bona fide resident of Puerto 
        Rico (within the meaning of section 937(a)) or a corporation or 
        partnership organized in Puerto Rico or under the law of Puerto 
        Rico for such taxable year, the credit determined under 
        subsection (a) shall be allowable to such resident, 
        corporation, or partnership under subpart C (and not allowed 
        under this subpart).
            ``(3) American samoa.--The Secretary shall pay to American 
        Samoa amounts estimated by the Secretary as being equal to the 
        aggregate benefits that would have been provided to residents 
        of American Samoa by reason of the application of this section 
        for taxable years beginning after December 31, 2022, if the 
        provisions of this section had been in effect in American 
        Samoa. The preceding sentence shall not apply unless American 
        Samoa has a plan, which has been approved by the Secretary, 
        under which such possession will promptly distribute such 
        payments to its residents.
            ``(4) Coordination with credit allowed against united 
        states income taxes.--No credit shall be allowed under this 
        section for any taxable year to any person--
                    ``(A) to whom a credit is allowable against taxes 
                imposed by a possession of the United States with a 
                mirror code tax system by reason of the application of 
                this section in such possession for such taxable year, 
                or
                    ``(B) who is eligible for a payment under a plan 
                described in paragraph (3).
            ``(5) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, the payments under 
        this subsection shall be treated in the same manner as a refund 
        due from credit provisions described in such section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.

SEC. 2. EXPENDITURES TO REMOVE ARCHITECTURAL AND TRANSPORTATION 
              BARRIERS TO THE HANDICAPPED AND ELDERLY.

    (a) In General.--Section 190 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsections:
    ``(d) Election To Take Deduction as Refundable Credit for Residents 
of Puerto Rico.--In the case of a taxpayer (in the case of a joint 
return, either spouse) who is a bona fide resident of Puerto Rico 
(within the meaning of section 937(a)) or a corporation or partnership 
organized in Puerto Rico or under the law of Puerto Rico for the 
taxable year, 21 percent of the amounts otherwise allowed as a 
deduction under this section shall be allowed as a credit under subpart 
C.
    ``(e) Application of Deduction in Possessions.--
            ``(1) Mirror code possessions.--
                    ``(A) In general.--The Secretary shall pay to each 
                possession of the United States with a mirror code tax 
                system amounts equal to the loss (if any) to that 
                possession by reason of the application of this section 
                (determined without regard to this subsection) with 
                respect to taxable years beginning after December 31, 
                2022. Such amounts shall be determined by the Secretary 
                based on information provided by the government of the 
                respective possession.
                    ``(B) Mirror code tax system.--For purposes of this 
                paragraph, the term `mirror code tax system' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
            ``(2) American samoa.--The Secretary shall pay to American 
        Samoa amounts estimated by the Secretary as being equal to the 
        aggregate benefits that would have been provided to residents 
        of American Samoa by reason of the application of this section 
        for taxable years beginning after December 31, 2022, if the 
        provisions of this section had been in effect in American 
        Samoa. The preceding sentence shall not apply unless American 
        Samoa has a plan, which has been approved by the Secretary, 
        under which such possession will promptly distribute such 
        payments to its residents.
            ``(3) Coordination with credit allowed against united 
        states income taxes.--No deduction shall be allowed under this 
        section for any taxable year to any person--
                    ``(A) to whom a credit is allowable against taxes 
                imposed by a possession of the United States with a 
                mirror code tax system by reason of the application of 
                this section in such possession for such taxable year, 
                or
                    ``(B) who is eligible for a payment under a plan 
                described in paragraph (2).
            ``(4) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, the payments under 
        this subsection shall be treated in the same manner as a refund 
        due from credit provisions described in such section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.
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