,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ccjg  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ah1 #bjai,mr4  
,pascrell 7= himself1 ,miss             
,gonzlez-,coln ( ,pu]to ,rico1 ,mr4     
,bey]1 ,ms4 ,del,bene1 ,mrs4 ,watson    
,coleman1 ,mr4 ,soto1 ,ms4 ,lee (       
,cali=nia1 ,ms4 ,velzquez1 ,mr4 ,higg9s 
( ,new ,york1 ,mr4 ,sablan1 ,mr4 ,san   
,nicolas1 & ,mr4 ,danny ,k4 ,davis (    
,ill9ois7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide =      
paym5ts to possessions ( ! ,unit$ ,/ates
 relat$ to ! application ( ! e>n$ income
 tax cr$it 9 su* possessions4  #a4      
,application ( e>n$ income tax cr$it 9  
possessions ( ! ,unit$ ,/ates  7a7 ,9   
g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new section3  #gebi4           
,application ( e>n$ income tax cr$it to 
possessions ( ! ,unit$ ,/ates  7a7      
,pu]to ,rico  7#a7 ,9 g5]al ,) respect  

to cal5d> ye> #bjbj & ea* cal5d> ye>    
!reaft]1 ! ,secret>y %all1 except z     
o!rwise provid$ 9 ?is subsection1 make  
paym5ts to ,pu]to ,rico equal to--  7,a7
 ! specifi$ mat*+ am\nt = su* cal5d>    
ye>1 plus  7,b7 9 ! case ( cal5d> ye>s  
#bjbj ?r\gh #bjbd1 ! less] (--  7i7 !   
exp5ditures made by ,pu]to ,rico dur+   
su* cal5d> ye> = education ef=ts )      
respect to individual taxpay]s & tax    
return prep>]s relat+ to ! e>n$ income  
tax cr$it1 or  7ii7 #a1jjj1jjj4  7#b7   
,requirem5t to re=m e>n$ income tax     
cr$it ,! ,secret>y %all n make any      
paym5ts "u p>agraph 7#a7 ) respect to   
any cal5d> ye> unless ,pu]to ,rico has 9
 effect an e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye> :i* 7relative to ! e>n$ income tax  
cr$it :i* 0 9 effect = taxable ye>s     
beg9n+ 9 or ) cal5d> ye> #bjai7         
increases ! p]c5tage ( e>n$ income :i*  
is all[$ z a cr$it = ea* gr\p (         
individuals ) respect to :i* su*        
p]c5tage is sep>ately /at$ or det]m9$ 9 

a mann] design$ to sub/antially increase
 work=ce p>ticipation4  7#c7 ,specifi$  
mat*+ am\nt ,= purposes ( ?is           
subsection-- 7,a7 ,9 g5]al ,! t]m       
specifi$ mat*+ am\nt means1 ) respect to
 any cal5d> ye>1 ! less] (--  7i7 !     
excess 7if any7 (-- 7,i7 ! co/ to ,pu]to
 ,rico ( ! e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye>1 ov]  7,,ii7 ! base am\nt = su*     
cal5d> ye>1 or  7ii7 ! product ( #c1    
multipli$ by ! base am\nt = su* cal5d>  
ye>4  7,b7 ,base am\nt  7i7 ,base am\nt 
= #bjbj ,9 ! case ( cal5d> ye> #bjbj1 ! 
t]m base am\nt means ! great] (-- 7,i7 !
 co/ to ,pu]to ,rico ( ! e>n$ income tax
 cr$it = taxable ye>s beg9n+ 9 or )     
cal5d> ye> #bjai 7r\nd$ to ! ne>e/      
multiple ( #a1jjj1jjj71 or  7,,ii7      
#bjj1jjj1jjj4  7ii7 ,inflation adju/m5t 
,9 ! case ( any cal5d> ye> aft] #bjbj1 !
 t]m base am\nt means ! doll> am\nt     
det]m9$ "u clause 7i7 increas$ by an    
am\nt equal to--  7,i7 su* doll> am\nt1 
multipli$ by--  7,,ii7 ! co/-(-liv+     

adju/m5t det]m9$ "u section #a7;f77#c7 =
 su* cal5d> ye>1 det]m9$ by sub/itut+   
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any am\nt  
det]m9$ "u ?is clause %all be r\nd$ to !
 ne>e/ multiple ( #a1jjj1jjj4  7#d7     
,rules relat$ to paym5ts & reports  7,a7
 ,tim+ ( paym5ts ,! ,secret>y %all make 
paym5ts "u p>agraph 7#a7 = any cal5d>   
ye>-- 7i7 aft] receipt ( ! report       
describ$ 9 subp>agraph 7,b7 = su* cal5d>
 ye>1 &  7ii7 except z provid$ 9 clause 
7i71 )9 a reasonable p]iod ( "t be=e !  
due date = individual income tax returns
 7z det]m9$ "u ! laws ( ,pu]to ,rico7 = 
taxable ye>s :i* began on ! fir/ day (  
su* cal5d> ye>4  7,b7 ,annual reports ,)
 respect to cal5d> ye> #bjbj & ea*      
cal5d> ye> !reaft]1 ,pu]to ,rico %all   
provide to ! ,secret>y a report :i* %all
 include--  7i7 an e/imate ( ! co/s     
describ$ 9 p>agraphs 7#a77;,b77i7 &     
7#c77;,a77i77,i7 ) respect to su* cal5d>
 ye>1 &  7ii7 a /atem5t ( su* co/s )    
respect to ! prec$+ cal5d> ye>4  7,c7   

,adju/m5ts  7i7 ,9 g5]al ,9 ! ev5t t any
 e/imate ( an am\nt is m or less ?an !  
actual am\nt z lat] det]m9$ & any paym5t
 "u p>agraph 7#a7 0 det]m9$ on ! basis (
 su* e/imate1 prop] paym5t %all be made 
by1 or to1 ! ,secret>y 7z ! case may be7
 z soon z practicable aft] ! det]m9ation
 t su* e/imate 0 inaccurate4 ,prop]     
adju/m5t %all be made 9 ! am\nt ( any   
subsequ5t paym5ts made "u p>agraph 7#a7 
to ! ext5t t prop] paym5t is n made "u !
 prec$+ s5t5ce be=e su* subsequ5t       
paym5ts4  7ii7 ,additional reports ,!   
,secret>y may require su* additional    
p]iodic reports ( ! in=mation describ$ 9
 subp>agraph 7,b7 z ! ,secret>y det]m9es
 appropriate to facilitate timely       
adju/m5ts "u clause 7i74  7,d7          
,det]m9ation ( co/ ( e>n$ income tax    
cr$it ,= purposes ( ?is subsection1 !   
co/ to ,pu]to ,rico ( ! e>n$ income tax 
cr$it %all be det]m9$ by ! ,secret>y on 
! basis ( ! laws ( ,pu]to ,rico & %all  
include r$uctions 9 rev5ues receiv$ by  
,pu]to ,rico by reason ( su* cr$it &    

refunds attributable to su* cr$it1 b    
%all n include any adm9i/rative co/s )  
respect to su* cr$it4  7,e7 ,prev5tion (
 manipulation ( base am\nt ,no paym5ts  
%all be made "u p>agraph 7#a7 if ! e>n$ 
income tax cr$it z 9 effect 9 ,pu]to    
,rico = taxable ye>s beg9n+ 9 or )      
cal5d> ye> #bjai is modifi$ aft] ! date 
( ! enactm5t ( ?is subsection4  7b7     
,possessions ) mirror code tax sy/ems   
7#a7 ,9 g5]al ,) respect to cal5d> ye>  
#bjbj & ea* cal5d> ye> !reaft]1 !       
,secret>y %all1 except z o!rwise provid$
 9 ?is subsection1 make paym5ts to !    
,virg9 ,isl&s1 ,guam1 & ! ,commonweal? (
 ! ,nor!rn ,m>iana ,isl&s equal to--    
7,a7 #ge p]c5t ( ! co/ to su* possession
 ( ! e>n$ income tax cr$it = taxable    
ye>s beg9n+ 9 or ) su* cal5d> ye>1 plus 
7,b7 9 ! case ( cal5d> ye>s #bjbj ?r\gh 
#bjbd1 ! less] (-- 7i7 ! exp5ditures    
made by su* possession dur+ su* cal5d>  
ye> = education ef=ts ) respect to      
individual taxpay]s & tax return prep>]s
 relat+ to su* e>n$ income tax cr$it1 or

  7ii7 #ej1jjj4  7#b7 ,application (    
c]ta9 rules ,rules simil> to ! rules (  
subp>agraphs 7,a71 7,b71 7,c71 & 7,d7 ( 
subsection 7a77#d7 %all apply = purposes
 ( ?is subsection4  7c7 ,am]ican ,samoa 
7#a7 ,9 g5]al ,) respect to cal5d> ye>  
#bjbj & ea* cal5d> ye> !reaft]1 !       
,secret>y %all1 except z o!rwise provid$
 9 ?is subsection1 make paym5ts to      
,am]ican ,samoa equal to--  7,a7 ! less]
 (-- 7i7 #ge p]c5t ( ! co/ to ,am]ican  
,samoa ( ! e>n$ income tax cr$it =      
taxable ye>s beg9n+ 9 or ) su* cal5d>   
ye>1 or  7ii7 #ab1jjj1jjj1 plus  7,b7 9 
! case ( cal5d> ye>s #bjbj ?r\gh #bjbd1 
! less] (--  7i7 ! exp5ditures made by  
,am]ican ,samoa dur+ su* cal5d> ye> =   
education ef=ts ) respect to individual 
taxpay]s & tax return prep>]s relat+ to 
su* e>n$ income tax cr$it1 or  7ii7     
#ej1jjj4  7#b7 ,requirem5t to enact &   
ma9ta9 an e>n$ income tax cr$it ,!      
,secret>y %all n make any paym5ts "u    
p>agraph 7#a7 ) respect to any cal5d>   
ye> unless ,am]ican ,samoa has 9 effect 

an e>n$ income tax cr$it = taxable ye>s 
beg9n+ 9 or ) su* cal5d> ye> :i* all[s a
 refundable tax cr$it to individuals on 
! basis ( ! taxpay]'s e>n$ income :i* is
 design$ to sub/antially increase       
work=ce p>ticipation4  7#c7 ,inflation  
adju/m5t ,9 ! case ( any cal5d> ye> aft]
 #bjbj1 ! #ab1jjj1jjj am\nt 9 p>agraph  
7#a77;,a77ii7 %all be increas$ by an    
am\nt equal to--  7,a7 su* doll> am\nt1 
multipli$ by--  7,b7 ! co/-(-liv+       
adju/m5t det]m9$ "u section #a7;f77#c7 =
 su* cal5d> ye>1 det]m9$ by sub/itut+   
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any        
increase det]m9$ "u ?is clause %all be  
r\nd$ to ! ne>e/ multiple ( #ajj1jjj4   
7#d7 ,application ( c]ta9 rules ,rules  
simil> to ! rules ( subp>agraphs 7,a71  
7,b71 7,c71 & 7,d7 ( subsection 7a77#d7 
%all apply = purposes ( ?is subsection4 
7d7 ,treatm5t ( paym5ts ,= purposes (   
section #acbd ( title #ca1 ,unit$ ,/ates
 ,code1 ! paym5ts "u ?is section %all be
 treat$ 9 ! same mann] z a refund due f 

a cr$it provision ref]r$ to 9 subsection
 7b77#b7 ( su* section4  4  7b7 ,cl]ical
 am5dm5t ,! table ( sections = *apt] #gg
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new item3  ,sec4 #gebi4         
,application ( e>n$ income tax cr$it to 
possessions ( ! ,unit$ ,/ates4  4