,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #aij  ,,in ,,the ,,house ,,of   
,,representatives  ,january #c1         
#bjag,ms4 ,plaskett introduced the      
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide for economic 
recovery in the territories4  #a4 ,short
 title ,this ,act may be cited as the   
,territorial ,tax ,equity and ,economic 
,growth ,act4  #b4 ,modification to     
residence and source rules involving    
possessions  7a7 ,bona fide resident    
,section #icg7;a7 of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 by striking the last sentence1 and 
7#b7 by amending paragraph 7#a7 to read 
as follows3  7#a7 who has a substantial 
presence 7determined under the          
principles of section #ggja7;b77#c77;,a7
 7applied by substituting #abb days for 
#ca days in clause 7i7 thereof7 without 
regard to sections #ggja7;b77#c77;,b71  
7,c71 and 7,d77 during the taxable year 

in ,guam1 ,american ,samoa1 the         
,northern ,mariana ,islands1 ,puerto    
,rico1 or the ,virgin ,islands1 as the  
case may be1 and  4  7b7 ,source rules  
,section #icg7;b7 of such ,code is      
amended-- 7#a7 by striking and at the   
end of paragraph 7#a71  7#b7 in         
paragraph 7#b7 by striking the period at
 the end and inserting the following3 to
 the extent such income is attributable 
to an office or fixed place of business 
within the ,united ,states 7determined  
under the rules of section              
#hfd7;c77#e7711 and  7#c7 by adding at  
the end the following3  7#c7 for        
purposes of paragraph 7#a71 the         
principles of section #hfd7;c77#b71     
rather than rules similar to the rules  
in section #hfd7;c77#d71 shall apply for
 purposes of determining whether income 
from sources without a possession       
specified in subsection 7a77#a7 is      
effectively connected with the conduct  
of a trade or business within such      
possession1 and  7#d7 for purposes of   

paragraph 7#b71 income from activities  
within the ,united ,states which are of 
a preparatory or auxiliary character    
shall 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 ,states4  4  7c7 ,source rules  
for personal property sales ,section    
#hfe7;j77#c7 of such ,code is amended by
 adding #icb1 after #ica1 and before    
#icc44  7d7 ,effective date ,the        
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjag4