,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #daj  ,,in ,,the ,,house ,,of   
,,representatives  ,january #i1         
#bjai,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 reimbursement
 for possessions of the ,united ,states 
with respect to the earned income tax   
credit and the child tax credit4  #a4   
,short title ,this ,act may be cited as 
the ,territorial ,economic ,growth and  
,recovery ,act of #bjai4  #b4           
,reimbursement of possessions for cost  
of earned income tax credit  7a7 ,earned
 income credit ,section #cb of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  7n7          
,treatment of possessions  7#a7         
,payments to possessions  7,a7 ,mirror  
code possession ,the ,secretary of the  
,treasury shall periodically 7but not   
less frequently than annually7 pay to   

each possession of the ,united ,states  
with a mirror code tax system amounts   
equal to the loss to that possession by 
reason of the application of this       
section 7determined without regard to   
paragraph 7#b77 with respect to taxable 
years beginning after ,december #ca1    
#bjah4 ,such amounts shall be determined
 by the ,secretary of the ,treasury     
based on information provided by the    
government of the respective possession4
  7,b7 ,other possessions ,the          
,secretary of the ,treasury shall       
periodically 7but no less frequently    
than annually7 pay to each possession of
 the ,united ,states which does not have
 a mirror code tax system amounts       
estimated by the ,secretary of the      
,treasury as being equal to the         
aggregate benefits that would have been 
provided to residents of such possession
 by reason of the application of this   
section for taxable years beginning     
after ,december #ca1 #bjah1 if a mirror 
code tax system had been in effect in   

such possession4 ,the preceding sentence
 shall not apply with respect to any    
possession of the ,united ,states unless
 such possession has a plan1 which has  
been approved by the ,secretary of the  
,treasury1 under which such possession  
will promptly distribute such payments  
to the residents of such possession4    
7#b7 ,coordination with credit allowed  
against united states income taxes ,no  
credit shall be allowed under this      
section for any taxable year to any     
person-- 7,a7 to whom a credit is       
allowed against taxes imposed by the    
possession by reason of this section    
7determined without regard to this      
paragraph7 for such taxable year1 or    
7,b7 who is eligible for a payment under
 a plan described in paragraph 7#a77;,b7
 with respect to such taxable year4     
7#c7 ,definitions and special rules     
7,a7 ,possession of the united states   
,for purposes of this subsection1 the   
term possession of the ,united ,states  
shall include such possessions as are   

specified in section #icg7;a77#a7 of the
 ,internal ,revenue ,code of #aihf4     
7,b7 ,mirror code tax system ,for       
purposes of this subsection1 the term   
mirror code tax system means1 with      
respect to any possession of the ,united
 ,states1 the income tax system of such 
possession if the income tax liability  
of the residents of such possession     
under such system is determined by      
reference to the income tax laws of the 
,united ,states as if such possession   
were the ,united ,states1 and such      
system includes a tax credit            
substantially identical to the credit   
allowed under this section4  7,c7       
,treatment of payments ,for purposes of 
section #acbd7;b77#b7 of title #ca1     
,united ,states ,code1 or any similar   
rule of law1 any payment made under this
 subsection shall be treated in the same
 manner as a refund due from the credit 
allowed under this section4  4  7b7     
,effective date ,the amendment made by  
this section shall apply with respect to

 taxable years beginning after ,december
 #ca1 #bjah4  #c4 ,reimbursement of     
possessions for cost of child tax credit
  7a7 ,child tax credit ,section #bd of 
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new subsection3  7i7          
,treatment of possessions  7#a7         
,payments to possessions  7,a7 ,mirror  
code possession ,the ,secretary of the  
,treasury shall periodically 7but not   
less frequently than annually7 pay to   
each possession of the ,united ,states  
with a mirror code tax system amounts   
equal to the loss to that possession by 
reason of the application of this       
section 7determined without regard to   
paragraph 7#b77 with respect to taxable 
years beginning after ,december #ca1    
#bjah4 ,such amounts shall be determined
 by the ,secretary of the ,treasury     
based on information provided by the    
government of the respective possession4
  7,b7 ,other possessions ,the          
,secretary of the ,treasury shall       

periodically 7but no less frequently    
than annually7 pay to each possession of
 the ,united ,states which does not have
 a mirror code tax system amounts       
estimated by the ,secretary of the      
,treasury as being equal to the         
aggregate benefits that would have been 
provided to residents of such possession
 by reason of the application of this   
section for taxable years beginning     
after ,december #ca1 #bjah1 if a mirror 
code tax system had been in effect in   
such possession4 ,the preceding sentence
 shall not apply with respect to any    
possession of the ,united ,states unless
 such possession has a plan1 which has  
been approved by the ,secretary of the  
,treasury1 under which such possession  
will promptly distribute such payments  
to the residents of such possession4    
7#b7 ,coordination with credit allowed  
against united states income taxes ,no  
credit shall be allowed under this      
section for any taxable year to any     
person-- 7,a7 to whom a credit is       

allowed against taxes imposed by the    
possession by reason of this section    
7determined without regard to this      
paragraph7 for such taxable year1 or    
7,b7 who is eligible for a payment under
 a plan described in paragraph 7#a77;,b7
 with respect to such taxable year4     
7#c7 ,definitions and special rules     
7,a7 ,possession of the united states   
,for purposes of this subsection1 the   
term possession of the ,united ,states  
shall include such possessions as are   
specified in section #icg7;a77#a7 of the
 ,internal ,revenue ,code of #aihf4     
7,b7 ,mirror code tax system ,for       
purposes of this subsection1 the term   
mirror code tax system means1 with      
respect to any possession of the ,united
 ,states1 the income tax system of such 
possession if the income tax liability  
of the residents of such possession     
under such system is determined by      
reference to the income tax laws of the 
,united ,states as if such possession   
were the ,united ,states1 and such      

system includes a tax credit            
substantially identical to the credit   
allowed under this section4  7,c7       
,treatment of payments ,for purposes of 
section #acbd7;b77#b7 of title #ca1     
,united ,states ,code1 or any similar   
rule of law1 any payment made under this
 subsection shall be treated in the same
 manner as a refund due from the credit 
allowed under this section4  4  7b7     
,effective date ,the amendment made by  
this section shall apply with respect to
 taxable years beginning after ,december
 #ca1 #bjah4