[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5163 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5163
To amend the Internal Revenue Code of 1986 to provide for economic
recovery in the Virgin Islands and Guam, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
April 29, 2016
Ms. Plaskett (for herself and Ms. Bordallo) introduced the following
bill; which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to provide for economic
recovery in the Virgin Islands and Guam, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Territorial Economic Growth and
Recovery Act of 2016''.
SEC. 2. REPEAL OF LIMITATION ON COVER OVER OF DISTILLED SPIRITS TAXES.
(a) In General.--Section 7652(f) of the Internal Revenue Code of
1986 is repealed.
(b) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2015.
SEC. 3. PAYMENTS TO UNITED STATES TERRITORIES AND POSSESSIONS.
(a) Earned Income Credit.--Section 32 of the Internal Revenue Code
of 1986 is amended by adding at the end the following:
``(n) Treatment of Possessions.--
``(1) Payments to possessions.--
``(A) Mirror code possession.--The Secretary of the
Treasury shall periodically (but not less frequently
than annually) pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the
application of this section (determined without regard
to paragraph (2)) with respect to taxable years
beginning after December 31, 2015. Such amounts shall
be determined by the Secretary of the Treasury based on
information provided by the government of the
respective possession.
``(B) Other possessions.--The Secretary of the
Treasury shall periodically (but no less frequently
than annually) pay to each possession of the United
States which does not have a mirror code tax system
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate benefits that would have
been provided to residents of such possession by reason
of the application of this section for taxable years
beginning after December 31, 2015, if a mirror code tax
system had been in effect in such possession. The
preceding sentence shall not apply with respect to any
possession of the United States unless such possession
has a plan, which has been approved by the Secretary of
the Treasury, under which such possession will promptly
distribute such payments to the residents of such
possession.
``(2) 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 allowed against taxes
imposed by the possession by reason of this section
(determined without regard to this paragraph) for such
taxable year, or
``(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
``(3) Definitions and special rules.--
``(A) Possession of the united states.--For
purposes of this subsection, the term `possession of
the United States' includes the Commonwealth of Puerto
Rico and the Commonwealth of the Northern Mariana
Islands.
``(B) Mirror code tax system.--For purposes of this
subsection, 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, and such system includes a tax
credit substantially identical to the credit allowed
under this section.
``(C) Treatment of payments.--For purposes of
section 1324(b)(2) of title 31, United States Code, or
any similar rule of law, any payment made under this
subsection shall be treated in the same manner as a
refund due from the credit allowed under this
section.''.
(b) Child Tax Credit.--Section 24 of such Code is amended by adding
at the end the following:
``(h) Payments to Virgin Islands and Guam for Lost Revenue.--The
Secretary shall make annual payments to the Virgin Islands and to Guam
in amounts equal to the aggregate loss to the Virgin Islands or Guam,
as the case may be, by reason of the application of this section with
respect to taxable years beginning after 2015. Such amounts shall be
determined by the Secretary based on information provided by the Virgin
Islands and Guam. 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 the credit allowed under this
section.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2015.
SEC. 4. STUDY AND REPORT REGARDING VIRGIN ISLANDS PUBLIC PENSION PLANS.
Not later than 6 months after the date of the enactment of this
Act, the Joint Board for the Enrollment of Actuaries established under
section 3041 of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1241) shall report to the Office of Domestic Finance of the
Department of the Treasury on recommendations on actions that would be
necessary to ensure that the public pension plans of the Virgin Islands
can be sustainably maintained and funded by the government of the
Virgin Islands for the next 20 years.
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