Us Congress 2023-2024 Regular Session

Us Congress House Bill HB10503

Caption

To amend the Internal Revenue Code of 1986 to determine global intangible low-taxed income without regard to certain income derived from services performed in the Virgin Islands.

Impact

The implications of HB10503 could be significant for both local corporations in the Virgin Islands and U.S. shareholders who derive income from those corporations. By modifying how global intangible low-taxed income is assessed, the bill intends to provide an incentive for economic growth and investment in the Virgin Islands, an area heavily reliant on tax incentives to stimulate development. This legislative adjustment is expected to encourage corporations to establish or retain operations within the Virgin Islands by making compliance with tax regulations more favorable.

Summary

House Bill 10503, titled the 'Restore Economic Vitality and Investment in the Virgin Islands Act' or 'REVIVE VI Act', aims to amend the Internal Revenue Code of 1986 concerning the determination of global intangible low-taxed income. The key change introduced by the bill allows for the exclusion of certain income derived from services performed in the Virgin Islands when calculating this income for specified United States shareholders. This initiative is primarily aimed at enhancing the economic resilience of the Virgin Islands by potentially attracting more businesses to operate there.

Contention

Notably, the bill's approach raises questions about the fairness and equity of tax burdens among U.S. businesses. Critics may argue that such measures could lead to an uneven playing field where businesses based in other jurisdictions might feel disadvantaged due to the favorable tax treatment granted to those operating in the Virgin Islands. Additionally, concerns about the integrity of tax code reforms could emerge, as this legislation may be perceived as a loophole for corporations seeking to minimize their tax liabilities under the guise of fostering economic development in a U.S. territory.

Companion Bills

No companion bills found.

Previously Filed As

US HB366

To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.

US HB10429

To amend the Internal Revenue Code of 1986 to establish a State and local general sales tax credit for small businesses.

US HB10468

To amend the Internal Revenue Code of 1986 to establish an elective residency-based income tax for nonresident citizens of the United States, and for other purposes.

US HB10467

To amend the Internal Revenue Code of 1986 to provide for in-service rollovers for individual retirement annuity purchases.

US SB5603

A bill to amend the Internal Revenue Code of 1986 to increase the threshold amounts for inclusion of Social Security benefits in income, and for other purposes.

US SB930

A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans.

US HB2749

To amend the Internal Revenue Code of 1986 to provide a refundable credit for certain home accessibility improvements.

US HB10373

To amend the Internal Revenue Code of 1986 to create a tax credit for nurse preceptors.

US SB1856

A bill to amend the Internal Revenue Code of 1986 to exclude military bonuses from gross income.

US SB5607

A bill to amend the Internal Revenue Code of 1986 to enhance the rehabilitation credit for buildings in rural areas.

Similar Bills

No similar bills found.