Bill · H.R. 368· House(119-HR-368)
Territorial Tax Parity and Fairness Act
- Introduced
- 1/13/2025
- Last activity
- 1/13/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Stacey Plaskett
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the "Territorial Tax Parity and Fairness Act," seeks to amend the Internal Revenue Code of 1986. It specifically targets how certain residents of the Virgin Islands are treated for tax purposes. The legislation aims to ensure that bona fide residents who are shareholders in corporations organized under the laws of the Virgin Islands are not considered United States persons. This change applies to determining certain inclusions in gross income related to those corporations. The amendments are set to take effect for taxable years beginning after December 31, 2024.
Yes· 3 of 6
Would middle-income households be better off under this?+5
The bill provides tax advantages to bona fide residents of the Virgin Islands holding corporate shares.
Would high-income households be better off under this?+5
The bill benefits high-income residents of the Virgin Islands who hold shares in local corporations by reclassifying their income treatment.
Would business owners be better off under this?+5
The bill benefits shareholders of corporations organized under the laws of the Virgin Islands.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Treatment for Virgin Islands Residents: Under Section 2(a), the bill changes the definition of a "United States person" for certain tax purposes. This would mean that a bona fide resident of the Virgin Islands who owns shares in a local corporation would not be treated as a U.S. person regarding certain gross income inclusions. This could benefit individuals by treating their dividend income as income derived from sources within the Virgin Islands under section 934(b)(1).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For High Income Households+5Good For High Net Worth Individuals+5Good For Middle Class Households+5
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Small Business Taxes+5
- 1/13/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House