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Tax Rule Changes for US Territory Residents

This act modifies rules for who is considered a resident of US territories like Puerto Rico or the Virgin Islands, and how their income is taxed. It aims to support economic growth in these regions, affecting where and how residents pay taxes.
Key points
Easier criteria for being a "bona fide" resident of US territories, potentially impacting tax benefits.
Changes in rules for determining income source, which may reduce taxes for businesses and individuals operating in these territories.
New rules for income from auxiliary activities in the US, which will not be treated as US-sourced income for territory residents' tax purposes.
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Expired
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Additional Information
Print number: 117_HR_1429
Sponsor: Del. Plaskett, Stacey E. [D-VI-At Large]
Process start date: 2021-02-26
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Territorial Tax Equity and Economic Growth Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1429.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-02-26.

What are the main provisions?

Key points include:

  • Easier criteria for being a "bona fide" resident of US territories, potentially impacting tax benefits.
  • Changes in rules for determining income source, which may reduce taxes for businesses and individuals operating in these territories.
  • New rules for income from auxiliary activities in the US, which will not be treated as US-sourced income for territory residents' tax purposes.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Del. Plaskett, Stacey E. [D-VI-At Large].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy