Congressional_BillsHR2839IH

Puer­to Rico Work and Empow­er­ment Act of 2009 (Intro­duced in House)

HR 2839 IH

111th CONGRESS

1st Ses­sion

H. R. 2839

To amend the Inter­nal Rev­enue Code of 1986 to make res­i­dents of Puer­to Rico eli­gi­ble for the earned income tax cred­it.

IN THE HOUSE OF REPRESENTATIVES

June 11, 2009

Mr. PASCRELL (for him­self, Mr. PIERLUISI, Mr. CROWLEY, Mrs. MALONEY, Mr. SIRES, Mr. MICA, and Mr. TOWNS) intro­duced the fol­low­ing bill; which was referred to the Com­mit­tee on Ways and Means


A BILL

To amend the Inter­nal Rev­enue Code of 1986 to make res­i­dents of Puer­to Rico eli­gi­ble for the earned income tax cred­it.

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 ‘Puer­to Rico Work and Empow­er­ment Act of 2009’.

SEC. 2. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED INCOME TAX CREDIT.

(a) In Gen­er­al- Sec­tion 32 of the Inter­nal Rev­enue Code of 1986 (relat­ing to earned income) is amend­ed by adding at the end the fol­low­ing new sub­sec­tion:

‘(n) Res­i­dents of Puer­to Rico -

‘(1) IN GENERAL- In the case of res­i­dents of Puer­to Rico –

‘(A) the Unit­ed States shall be treat­ed as includ­ing Puer­to Rico for pur­pos­es of sub­sec­tions ©(1)(A)(ii)(I) and ©(3)©,

‘(B) sub­sec­tion ©(1)(D) shall not apply to non­res­i­dent alien indi­vid­u­als who are res­i­dents of Puer­to Rico , and

‘© adjust­ed gross income and gross income shall be com­put­ed with­out regard to sec­tion 933 for pur­pos­es of sub­sec­tions (a)(2)(B) and ©(2)(A)(i).

‘(2) LIMITATION ON CREDIT-

‘(A) IN GENERAL- The cred­it allowed under this sec­tion by rea­son of this sub­sec­tion for any tax­able year shall not exceed the taxpayer’s social secu­ri­ty tax­es for such year.

‘(B) SOCIAL SECURITY TAXES- For pur­pos­es of sub­para­graph (A)–

‘(i) IN GENERAL- The term ‘social secu­ri­ty tax­es’ means, with respect to any tax­pay­er for any tax­able year–

‘(I) the amount of the tax­es imposed by sec­tions 3101 and 3201(a) on amounts received by the tax­pay­er dur­ing the cal­en­dar year in which the tax­able year begins,

‘(II) the amount of the tax­es imposed on employ­ers by sec­tion 3111 and 3221(a) on amounts received by the tax­pay­er dur­ing the cal­en­dar year which the tax­able year begins,

‘(III) the amount of the tax­es imposed by sec­tion 1401 on the self-employ­ment income of the tax­pay­er for the tax­able year, and

‘(IV) the amount of the tax­es imposed by sec­tion 3211(a) on amounts received by the tax­pay­er dur­ing the cal­en­dar year in which the tax­able year begins.

‘(ii) COORDINATION WITH SPECIAL REFUND OF SOCIAL SECURITY TAXES- The term ‘social secu­ri­ty tax­es’ shall not include any tax­es to the extent the tax­pay­er is enti­tled to a spe­cial refund of such tax­es under sec­tion 6413©.

‘(iii) SPECIAL RULE- Any amounts paid pur­suant to an agree­ment under sec­tion 3121(l) (relat­ing to agree­ments entered into by Amer­i­can employ­ers with respect to for­eign affil­i­ates) which are equiv­a­lent to the tax­es imposed by sec­tions 3101 and 3111 shall be treat­ed as such tax­es for pur­pose of clause (i).’.

(b) Child Tax Cred­it Not Reduced- Sub­clause (II) of sec­tion 24(d)(1)(B)(ii) of such Code (relat­ing to child tax cred­it) is amend­ed by insert­ing before the peri­od ‘(deter­mined with­out regard to sec­tion 32(n) in the case of res­i­dents of Puer­to Rico )’.

© Effec­tive Date- The amend­ments made by this sec­tion shall apply to tax­able years begin­ning after Decem­ber 31, 2009.