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Earned Income Tax Credit Extended to Puerto Rico Residents.

This bill aims to extend eligibility for the Earned Income Tax Credit (EITC) to residents of Puerto Rico. This means that working individuals in Puerto Rico who meet specific income criteria will be able to claim a tax refund, potentially increasing their disposable income. The changes will apply to tax years beginning after December 31, 2023.
Key points
Residents of Puerto Rico will become eligible for the federal Earned Income Tax Credit (EITC), which was not previously the case.
The amount of the credit for Puerto Rico residents will be capped at what a similarly situated taxpayer in a U.S. state would receive.
The bill also adjusts how the child tax credit is calculated for Puerto Rico residents, ensuring it is not reduced due to the new EITC eligibility.
Annual federal reimbursement for Puerto Rico's local EITC will terminate after 2023, as residents will qualify for the federal credit.
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Additional Information
Earned Income Tax Credit Equity for Puerto Rico Act of 2023
Print number: HR 257
Sponsor: Rescom. González-Colón, Jenniffer [R-PR-At Large]
Process start date: 2023-01-10