H.R. 412 · 116th Congress
Territorial Tax Equity and Economic Growth Act of 2019
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Never voted on. It didn't reach a floor vote before the 116th Congress ended, so it expired. A bill has to be introduced again to be considered in a new Congress.
D
PlaskettSponsorNo cosponsors.
This bill modifies the residence and income source rules that apply with respect to the taxation of income from U.S. possessions (Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands).
What it does: CRS summary · Introduced in House · Jan 9, 2019
Territorial Tax Equity and Economic Growth Act of 2019
This bill modifies the residence and income source rules that apply with respect to the taxation of income from U.S. possessions (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.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Territorial Tax Equity and Economic Growth Act of 2019
Latest action (Jan 9, 2019): Referred to the House Committee on Ways and Means.
Policy area: Taxation · Origin: House · Introduced: Jan 9, 2019
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.