,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bfdi  ,,in ,,the ,,house ,,of  
,,representatives  ,may #i1 #bjai,mr4   
,pascrell 7for himself1 ,mr4 ,beyer1    
,mr4 ,grijalva1 ,mr4 ,higgins of ,new   
,york1 ,mr4 ,soto1 ,mrs4 ,watson        
,coleman1 ,ms4 ,velzquez1 ,ms4 ,lee of  
,california1 and ,miss ,gonzlez-,coln of
 ,puerto ,rico7 introduced the following
 bill2 which was referred to the        
,committee on ,natural ,resources  ,a   
,,bill  ,to provide for a ,federal match
 for earned income credit expansion for 
,puerto ,rico4  #a4 ,short title ,this  
,act may be cited as the ,tax ,equity   
and ,prosperity for ,puerto ,rican      
,families ,act of #bjai4  #b4 ,earned   
income credit expansion for puerto rico 
7a7 ,in general ,subsequent to an       
amendment of the ,puerto ,rico ,internal
 ,revenue ,code of #bjaa expanding the  
earned income credit added by ,act      
#beg-bjah in a manner that both reduces 
poverty and encourages labor force      
participation1 the ,secretary of the    

,treasury shall make annual payments to 
,puerto ,rico in the amount determined  
under subsection 7b74 ,such payments    
shall be made only if ,puerto ,rico     
provides to the ,secretary of the       
,treasury--  7#a7 a report prepared by  
the ,secretary of the ,treasury of      
,puerto ,rico of the estimated cost of  
such expansion in the first year that   
the expanded earned income credit will  
be paid by ,puerto ,rico2 and  7#b7     
annually thereafter1 a report prepared  
by the ,secretary of the ,treasury of   
,puerto ,rico of the estimated cost of  
such expansion in the year of the report
 and an updated estimate of the actual  
cost of such expansion in the preceding 
year4  ,puerto ,rico shall submit to the
 ,secretary the report in paragraph 7#a7
 or 7#b7 on or after ,january #ae of the
 year in which the expanded earned      
income credit will be paid in ,puerto   
,rico1 and the ,secretary shall make    
each annual payment within three weeks  
of receiving the report4  7b7 ,annual   

payment  7#a7 ,the payment in any year  
shall comprise the base payment for that
 year and the adjustment for any        
underpayment or overpayment made in the 
prior year4  7#b7 ,the base payment for 
a year shall be the estimated cost for  
that year under subsection 7a7 or       
#fab1jjj1jjj1 whichever is less4  7#c7  
,the adjustment for a year shall be an  
increase equal to any underpayment in   
the prior year1 or a decrease equal to  
any overpayment in the prior year4  7,a7
 ,an underpayment in the prior year is  
the amount by which the base payment in 
the prior year would have been higher if
 the estimated cost in the prior year   
under subsection 7a7 had equaled the    
updated estimate of the actual cost in  
the prior year under subsection 7a77#b74
  7,b7 ,an overpayment in the prior year
 is the amount by which the base payment
 in the prior year would have been lower
 if the estimated cost in the prior year
 under subsection 7a7 had equaled the   
updated estimate of the actual cost in  

the prior year under subsection 7a77#b74
  7c7 ,cost of expansion ,for purposes  
of this section1 the cost of expanding  
the earned income credit in ,puerto     
,rico as described in subsection 7a7 for
 a year shall include only the cost of  
the amendments made as described in such
 subsection relative to the cost of laws
 in effect on the date of the enactment 
of this ,act as if those laws had       
remained in effect4  7d7 ,reporting     
requirements ,when the ,secretary of the
 ,treasury of ,puerto ,rico submits to  
the ,secretary of the ,treasury the     
report in subsection 7a71 then the      
,secretary of the ,treasury of ,puerto  
,rico shall submit at the same time a   
separate report on the application of   
the ,puerto ,rico earned income credit1 
including the number of beneficiaries   
and household composition1 average      
benefits for different households1      
participation rates for eligible        
populations1 error rates and other      
compliance matters1 and the effects of  

the credit on labor force participation 
and poverty reduction4  7e7 ,outreach   
grant ,in addition to the payments under
 subsection 7a71 the ,secretary of the  
,treasury shall make a one-time grant in
 the amount of #e1jjj1jjj to ,puerto    
,rico immediately after the enactment by
 ,puerto ,rico of an expansion of its   
earned income credit as referred to in  
subsection 7a71 for the purpose of      
taxpayer education efforts relating to  
the earned income credit1 including     
education of paid tax preparers4  7f7   
,appropriations ,there are hereby       
appropriated to the ,secretary of the   
,treasury such sums as are necessary to 
carry out the purposes of this section4 
7g7 ,adjustment for inflation  7#a7 ,in 
general ,for each calendar year         
beginning after the year of the first   
payment made under subsection 7b71 the  
#fab1jjj1jjj amount in that subsection  
shall be increased by an amount equal   
to--  7,a7 such dollar amount2          
multiplied by  7,b7 the cost-of-living  

adjustment determined under section     
#a7;f77#c7 of the ,internal ,revenue    
,code of #aihf1 determined by           
substituting the calendar year preceding
 the year of the first payment made     
under subsection 7b7 for #bjaf in       
subparagraph 7,a77ii7 thereof4  7#b7    
,rounding ,if any amount calculated     
under paragraph 7#a7 is not a multiple  
of #ejj1 such amount shall be rounded to
 the next lower multiple of #ejj4