Representative Plaskett Proposes Tax Rule Changes to Boost Economic Growth in U.S. Territories
Stalled
No legislative action in over 90 days.
Gig workers and freelancers who live in U.S. territories but occasionally do work on the mainland would benefit from the new source rules. Income from preparatory or auxiliary activities in the U.S. would no longer be treated as mainland-sourced income, reducing their tax burden and making it easier to stay based in the territories.
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
The tax bill before Congress would partially exempt the U.S. Virgin Islands from a law meant to crack down on tax havens. The provision, included in the 'One Big Beautiful Bill,' would relax a global minimum tax for certain income from services provided in the territory.
Delegate Stacey Plaskett reintroduced the Territorial Tax Equity and Economic Growth Act, which adjusts residence and income source rules to promote economic recovery. The bill aims to make the tax system fairer for local residents and businesses by providing more flexible residency tests.
The OBBBA, signed in July 2025, includes numerous amendments to the US Internal Revenue Code affecting Puerto Rico. It renames GILTI to 'net CFC tested income' and changes effective tax rates, impacting how island-based business activities are taxed compared to the mainland.
Document Type
Congressional Bill
Official Title
Territorial Tax Equity and Economic Growth Act of 2025
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