This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the legislative process and is considered active. There are no upcoming votes scheduled at this time.
Legislative Progress
House
Senate
President
Law
Unlikely to pass
Standalone tax bills for territories rarely pass on their own and usually need to be part of a much larger bipartisan tax package to move forward.
How we got here
This bill’s path across every version that has carried it.
↺
Reintroduced
Reintroduced from H.R. 1055 (118th), which died when its Congress ended.
This bill changes tax laws to help businesses located in U.S. territories like Puerto Rico and the Virgin Islands. It stops the federal government from counting income earned in these territories as foreign income for certain tax calculations.
To get this tax break, a company must prove it is truly based in the territory. At least 80 percent of its total income must come from the territory, and 75 percent must come from active business operations there over a three-year period.
The goal is to boost the economies of these islands by making it cheaper for companies to operate there. By lowering the tax bill for these businesses, supporters hope to create more local jobs and encourage new investment.
If this bill becomes law, the changes would apply to taxes for the year 2024 and beyond. This could provide immediate financial relief to qualified companies currently paying higher federal taxes on their territorial earnings.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
2 milestones2 actions
Jan 13, 2025House
Referred to the House Committee on Ways and Means.
Jan 13, 2025
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes, news coverage, or related bills recorded for this bill yet.
Source Information
Document Type
Congressional Bill
Official Title
Territorial Economic Recovery Act
Bill NumberHR 363
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.
