Territorial Tax Equity and Economic Growth Act
Latest action · Apr 21, 2016 Referred to the House Committee on Ways and Means.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedApr 21, 2016
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Territorial Tax Equity and Economic Growth Act
This bill amends the Internal Revenue Code to modify the residence and income source rules involving U.S. possessions, including Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.
The bill specifies that a bona fide resident of a possession is a person who has a substantial presence in the possession for at least 122 days during the calendar year. (Under current law, the person must be present for at least 183 days during the year.)
(Under current law, income is not considered to be 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 to the extent that the income is attributable to an office or fixed place of business within the United States. Income from activities within the United States which are of a preparatory or auxiliary character may not be 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 specifies 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.
The Internal Revenue Service may limit the application in the Virgin Islands of requirements for U.S. citizens and resident aliens to pay a tax to a foreign country to be considered a nonresident of the United States for certain personal property sales.
Cosponsors
Members who signed on, in the order they did.
Actions 2
Everything that happened, newest first.
- Apr 21, 2016Introduced in House
- Apr 21, 2016Referred to the House Committee on Ways and Means.
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 5039 | Territorial Tax Parity Act of 2016 | Related bill | Apr 21, 2016 |
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
Text 1
Each version as it was printed, newest first.
- Apr 21, 2016Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.
