,i #aafth ,,congress #ast ,session ,h4 ,r4 #ccjg ,,in ,,the ,,house ,,of ,,representatives ,june #ah1 #bjai,mr4 ,pascrell 7for himself1 ,miss ,gonzlez-,coln of ,puerto ,rico1 ,mr4 ,beyer1 ,ms4 ,del,bene1 ,mrs4 ,watson ,coleman1 ,mr4 ,soto1 ,ms4 ,lee of ,california1 ,ms4 ,velzquez1 ,mr4 ,higgins of ,new ,york1 ,mr4 ,sablan1 ,mr4 ,san ,nicolas1 and ,mr4 ,danny ,k4 ,davis of ,illinois7 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 payments to possessions of the ,united ,states related to the application of the earned income tax credit in such possessions4 #a4 ,application of earned income tax credit in possessions of the ,united ,states 7a7 ,in general ,chapter #gg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #gebi4 ,application of earned income tax credit to possessions of the ,united ,states 7a7 ,puerto ,rico 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to ,puerto ,rico equal to-- 7,a7 the specified matching amount for such calendar year1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by ,puerto ,rico during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to the earned income tax credit1 or 7ii7 #a1jjj1jjj4 7#b7 ,requirement to reform earned income tax credit ,the ,secretary shall not make any payments under paragraph 7#a7 with respect to any calendar year unless ,puerto ,rico has in effect an earned income tax credit for taxable years beginning in or with such calendar year which 7relative to the earned income tax credit which was in effect for taxable years beginning in or with calendar year #bjai7 increases the percentage of earned income which is allowed as a credit for each group of individuals with respect to which such percentage is separately stated or determined in a manner designed to substantially increase workforce participation4 7#c7 ,specified matching amount ,for purposes of this subsection-- 7,a7 ,in general ,the term specified matching amount means1 with respect to any calendar year1 the lesser of-- 7i7 the excess 7if any7 of-- 7,i7 the cost to ,puerto ,rico of the earned income tax credit for taxable years beginning in or with such calendar year1 over 7,,ii7 the base amount for such calendar year1 or 7ii7 the product of #c1 multiplied by the base amount for such calendar year4 7,b7 ,base amount 7i7 ,base amount for #bjbj ,in the case of calendar year #bjbj1 the term base amount means the greater of-- 7,i7 the cost to ,puerto ,rico of the earned income tax credit for taxable years beginning in or with calendar year #bjai 7rounded to the nearest multiple of #a1jjj1jjj71 or 7,,ii7 #bjj1jjj1jjj4 7ii7 ,inflation adjustment ,in the case of any calendar year after #bjbj1 the term base amount means the dollar amount determined under clause 7i7 increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by-- 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any amount determined under this clause shall be rounded to the nearest multiple of #a1jjj1jjj4 7#d7 ,rules related to payments and reports 7,a7 ,timing of payments ,the ,secretary shall make payments under paragraph 7#a7 for any calendar year-- 7i7 after receipt of the report described in subparagraph 7,b7 for such calendar year1 and 7ii7 except as provided in clause 7i71 within a reasonable period of time before the due date for individual income tax returns 7as determined under the laws of ,puerto ,rico7 for taxable years which began on the first day of such calendar year4 7,b7 ,annual reports ,with respect to calendar year #bjbj and each calendar year thereafter1 ,puerto ,rico shall provide to the ,secretary a report which shall include-- 7i7 an estimate of the costs described in paragraphs 7#a77;,b77i7 and 7#c77;,a77i77,i7 with respect to such calendar year1 and 7ii7 a statement of such costs with respect to the preceding calendar year4 7,c7 ,adjustments 7i7 ,in general ,in the event that any estimate of an amount is more or less than the actual amount as later determined and any payment under paragraph 7#a7 was determined on the basis of such estimate1 proper payment shall be made by1 or to1 the ,secretary 7as the case may be7 as soon as practicable after the determination that such estimate was inaccurate4 ,proper adjustment shall be made in the amount of any subsequent payments made under paragraph 7#a7 to the extent that proper payment is not made under the preceding sentence before such subsequent payments4 7ii7 ,additional reports ,the ,secretary may require such additional periodic reports of the information described in subparagraph 7,b7 as the ,secretary determines appropriate to facilitate timely adjustments under clause 7i74 7,d7 ,determination of cost of earned income tax credit ,for purposes of this subsection1 the cost to ,puerto ,rico of the earned income tax credit shall be determined by the ,secretary on the basis of the laws of ,puerto ,rico and shall include reductions in revenues received by ,puerto ,rico by reason of such credit and refunds attributable to such credit1 but shall not include any administrative costs with respect to such credit4 7,e7 ,prevention of manipulation of base amount ,no payments shall be made under paragraph 7#a7 if the earned income tax credit as in effect in ,puerto ,rico for taxable years beginning in or with calendar year #bjai is modified after the date of the enactment of this subsection4 7b7 ,possessions with mirror code tax systems 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to the ,virgin ,islands1 ,guam1 and the ,commonwealth of the ,northern ,mariana ,islands equal to-- 7,a7 #ge percent of the cost to such possession of the earned income tax credit for taxable years beginning in or with such calendar year1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by such possession during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to such earned income tax credit1 or 7ii7 #ej1jjj4 7#b7 ,application of certain rules ,rules similar to the rules of subparagraphs 7,a71 7,b71 7,c71 and 7,d7 of subsection 7a77#d7 shall apply for purposes of this subsection4 7c7 ,american ,samoa 7#a7 ,in general ,with respect to calendar year #bjbj and each calendar year thereafter1 the ,secretary shall1 except as otherwise provided in this subsection1 make payments to ,american ,samoa equal to-- 7,a7 the lesser of-- 7i7 #ge percent of the cost to ,american ,samoa of the earned income tax credit for taxable years beginning in or with such calendar year1 or 7ii7 #ab1jjj1jjj1 plus 7,b7 in the case of calendar years #bjbj through #bjbd1 the lesser of-- 7i7 the expenditures made by ,american ,samoa during such calendar year for education efforts with respect to individual taxpayers and tax return preparers relating to such earned income tax credit1 or 7ii7 #ej1jjj4 7#b7 ,requirement to enact and maintain an earned income tax credit ,the ,secretary shall not make any payments under paragraph 7#a7 with respect to any calendar year unless ,american ,samoa has in effect an earned income tax credit for taxable years beginning in or with such calendar year which allows a refundable tax credit to individuals on the basis of the taxpayer's earned income which is designed to substantially increase workforce participation4 7#c7 ,inflation adjustment ,in the case of any calendar year after #bjbj1 the #ab1jjj1jjj amount in paragraph 7#a77;,a77ii7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by-- 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under this clause shall be rounded to the nearest multiple of #ajj1jjj4 7#d7 ,application of certain rules ,rules similar to the rules of subparagraphs 7,a71 7,b71 7,c71 and 7,d7 of subsection 7a77#d7 shall apply for purposes of this subsection4 7d7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 4 7b7 ,clerical amendment ,the table of sections for chapter #gg of such ,code is amended by adding at the end the following new item3 ,sec4 #gebi4 ,application of earned income tax credit to possessions of the ,united ,states4 4