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H.R. 368

U.S. House•In House Committee

Summary

H.R. 368, the Territorial Tax Parity and Fairness Act, was introduced in the House on Jan 13, 2025 by Rep. Stacey Plaskett (D). It was referred to Ways And Means, and last saw action on Jan 13, 2025: Referred to the House Committee on Ways and Means.

Record

Text

H.R. 368 has no co-sponsors and has not gone to a roll call.

hb368/introduced-in-house.txt
119 HR 368 IH: Territorial Tax Parity and Fairness Act
 U.S. House of Representatives
 2025-01-13
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 368  IN THE HOUSE OF REPRESENTATIVES   January 13, 2025   Ms. Plaskett  introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to provide that certain bona fide residents of the Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands are not treated as United States persons for purposes of determining certain inclusions in gross income with respect to such corporations.
1.
Short title
This Act may be cited as the   Territorial Tax Parity and Fairness Act  .
2.
Certain bona fide residents of Virgin Islands
(a)
In general
 Section 957(c)  of the Internal Revenue Code of 1986 is amended by striking  and  at the end of paragraph (1), by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph:
(2)
with respect to a corporation organized under the laws of the Virgin Islands, such term does not include an individual who is a bona fide resident of the Virgin Islands, if a dividend received by such individual during the taxable year from such corporation would, for purposes of section 934(b)(1), be treated as income derived from sources within the Virgin Islands, and
 .
(b)
Conforming amendment
Section 957(c) of such Code is amended by striking  paragraph (2)  in the last sentence and inserting  paragraph (3) .
(c)
Effective date
The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2024, and taxable years of individuals within which or with which such taxable years of foreign corporations end.

Tracker

The tracker indicates the progress of this legislation as it moves through the legislative process.

  1. Introduced2025-01-13
  2. Passed House
  3. Passed Senate
  4. Conference
  5. To President
  6. Became Law

CRS Summary

The summaries are the Congressional Research Service’s, one per stage. Read them in full.

Introduced in House Jan 13, 2025

hb368/introduced-in-house.md

Shown Here:
Introduced in House (01/13/2025)

Territorial Tax Parity and Fairness Act

This bill excepts individuals who are bona fide residents of the Virgin Islands from including in gross income for U.S. federal tax purposes subpart F income received from certain corporations if such income may be sourced to the Virgin Islands.

Under current law, a U.S. shareholder of a controlled foreign corporation generally is required to include in gross income their pro rata share of dividends, interest, rent, royalties, and certain other types of income of the controlled foreign corporation (collectively known as subpart F income). A U.S. shareholder is a U.S. person (citizen, resident, domestic partnership or corporation, trust, or estate) that owns a certain percentage of stock in the controlled foreign corporation.

However, under current law, the definition of a U.S. person does not include individuals who are bona fide residents of the U.S. territories of Puerto Rico, Guam, America Samoa, and the Northern Mariana Islands who receive subpart F income from controlled foreign corporations that meets certain requirements for being sourced to the territory or being connected to or derived from a trade or business in the territory.

This bill expands the exceptions from the definition of a U.S. person for purposes of the subpart F income tax rules, to include individuals who are bona fide residents of the Virgin Islands and receive subpart F income from a controlled foreign corporation organized under the laws of the Virgin Islands if the subpart F income may be sourced to the Virgin Islands.

Sponsors

Rep. Stacey Plaskett (D) sponsors H.R. 368 alone.

Stacey Plaskett

Rep. · D–VI · Sponsor

Committees

H.R. 368 went before 1 committee: Ways and Means.

Ways and Means
Ways and Means
Referred To · Jan 13, 2025 · 1,160 Bills

Actions

H.R. 368 has taken 2 actions since Jan 13, 2025.

ChamberAction
Jan 13, 2025
House
Introduced in House
Jan 13, 2025
House
Referred to the House Committee on Ways and Means.Ways and Means Committee

Votes

H.R. 368 has not gone to a roll call.

Titles

H.R. 368 goes by 3 titles, 1 of them short titles.

  • Territorial Tax Parity and Fairness Act — Display Title
  • Territorial Tax Parity and Fairness Act — Short Title(s) as Introduced
  • To amend the Internal Revenue Code of 1986 to provide that certain bona fide residents of the Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands are not treated as United States persons for purposes of determining certain inclusions in gross income with respect to such corporations. — Official Title as Introduced

Classification

The Congressional Research Service files H.R. 368 under Taxation, one of its 31 policy areas, and gives it 4 legislative subjects.

CRS Subjects

CRS assigns every bill one policy area from its 31; H.R. 368’s is Taxation.

hr368/policy-areas.txt
TaxationAgriculture and FoodAnimalsArmed Forces and National SecurityArts, Culture, ReligionCivil Rights and Liberties, Minority IssuesCommerceCongressCrime and Law EnforcementEconomics and Public FinanceEducationEmergency ManagementEnergyEnvironmental ProtectionFamiliesFinance and Financial SectorForeign Trade and International FinanceGovernment Operations and PoliticsHealthHousing and Community DevelopmentImmigrationInternational AffairsLabor and EmploymentLawNative AmericansPublic Lands and Natural ResourcesScience, Technology, CommunicationsSocial WelfareSports and RecreationTransportation and Public WorksWater Resources Development

Legislative Subjects

H.R. 368 carries 4 of CRS’s legislative subjects, from Income tax rates to Virgin Islands.

hr368/subjects.txt
Income tax ratesTax administration and collection, taxpayersU.S. territories and protectoratesVirgin Islands

Constitutional authority

The clause the sponsor cites as Congress’s power to enact H.R. 368, as entered in the Congressional Record.

[Congressional Record Volume 171, Number 6 (Monday, January 13, 2025)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Ms. PLASKETT:H.R. 368.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8 of the Constitution.[Page H112]

Source: congress.gov · legiscan.com