Us Congress 2023-2024 Regular Session

Us Congress House Bill HB257

Introduced
1/10/23  

Caption

Earned Income Tax Credit Equity for Puerto Rico Act of 2021 This bill makes residents of Puerto Rico eligible for the federal earned income tax credit.

Impact

If enacted, this bill would significantly amend Section 32 of the Internal Revenue Code, specifically including residents of Puerto Rico as eligible for the EITC. This amendment would allow these residents to benefit from a tax credit that can help alleviate poverty and support working families. The legislation also clarifies how income should be calculated for Puerto Rican residents concerning this credit, thus ensuring that they receive an equivalent benefit to similar taxpayers residing in U.S. states.

Summary

House Bill 257, officially titled the Earned Income Tax Credit Equity for Puerto Rico Act of 2023, proposes to amend the Internal Revenue Code to extend eligibility for the earned income tax credit (EITC) to residents of Puerto Rico. This legislative change aims to provide financial relief and equity to Puerto Rican residents, who have historically been excluded from federal tax benefits that are available to residents of the states. The bill emphasizes the need for equal treatment under tax laws, addressing the disparities faced by individuals living in Puerto Rico compared to their counterparts on the mainland.

Contention

The introduction of HB 257 could spark discussions and contentious debates regarding fiscal policy and tax equity. Proponents of the bill argue it is a crucial step toward recognizing the economic challenges that residents of Puerto Rico face, especially in the aftermath of natural disasters and ongoing financial difficulties. Critics, however, may raise concerns about the financial implications of extending such federal benefits and the potential effects on federal budgets and resource allocation. Additionally, the bill may lead to debates about the broader status of Puerto Rico within the United States and federal responsibilities toward the territory.

Companion Bills

No companion bills found.

Previously Filed As

US HB258

Puerto Rico Data Collection Equality Act This bill addresses the collection and publication of statistics relating to Puerto Rico. Specifically, the bill requires the Interagency Council on Statistical Policy to develop and implement a plan to collect and publish statistics regarding Puerto Rico in the same manner as federal agencies collect and report statistics for the states.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US HR88

This resolution expresses support for the designation of Earned Income Tax Credit Awareness Day. The resolution also calls for increasing awareness of (1) the earned income tax credit, which is refundable; (2) other refundable federal tax credits; and (3) free tax filing assistance.

US HB4026

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.

US HB2757

Puerto Rico Status Act

US HB256

Supplemental Security Income Equality Act This bill extends the Supplemental Security Income (SSI) program to Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa. This is a federal program designed to help aged, blind, and disabled individuals with limited income and resources meet basic needs. When Congress created the SSI program in 1972, it excluded these territories. The Social Security Administration may waive or modify statutory requirements relating to the provision of benefits as necessary to adapt the SSI program to each territory. This bill also eliminates a limit on payments from the Temporary Assistance for Needy Families (TANF) program and other Department of Health and Human Services programs to the territories.

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US HB376

Puerto Rico Film, Television, and Theatre Production Act of 2023 This bill extends the expensing provisions for film, television, and theater productions to productions in Puerto Rico. (Expensing permits the write-off of property costs in the current taxable year rather than amortizing such costs over a period of years.)

US HB254

TRICARE Equality Act This bill addresses the administration of Department of Defense (DOD) health care programs and benefits in Puerto Rico. Specifically, the bill requires DOD to treat the administration of TRICARE Prime availability in Puerto Rico in a similar manner as a state. The bill also requires DOD to ensure that, in providing travel and transportation allowances related to specialty medical treatment, individuals located in Puerto Rico are eligible to receive such allowances. The Federal Electronic Health Record Modernization Office must coordinate with the Department of Health of Puerto Rico to share health information through the Joint Health Information Exchange.

US HB312

Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.

Similar Bills

No similar bills found.