Bills · HR 363
IN COMMITTEE· 119TH CONGRESS
House BillHR 363GuamVirgin Islands
Territorial Economic Recovery Act
INTRO JAN 13· LAST ACTION JAN 13
READING
2MIN
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READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to boost the economies of U.S. territories, many of which face significant economic challenges. By offering a tax incentive, the bill tries to encourage U.S. companies to invest and create jobs in places like Puerto Rico and the U.S. Virgin Islands. This could mean more stability and prosperity for the residents of these territories, as well as potentially more goods and services produced within the U.S. sphere of influence.
If this bill becomes law, companies might find it more financially appealing to establish or expand their operations in U.S. territories, potentially leading to economic growth, new businesses, and better job prospects in those areas. If it doesn't pass, the current tax rules would remain, meaning that the income from these territorial operations would continue to be subject to the same U.S. tax calculations, potentially reducing the incentive for companies to invest there compared to other low-tax foreign jurisdictions.
KEY PROVISIONS
4AI-extractedPROVISION 01
Excludes income earned by qualified possession corporations from "tested income" calculations for U.S. tax purposes.
This directly reduces the U.S. tax burden on eligible companies operating in U.S. territories.
PROVISION 02
Defines a "qualified possession corporation" as a U.S.-owned foreign company primarily (80% income from, 75% active business in) operating within a U.S. possession for the past three years.
This sets clear criteria for which companies can benefit from the tax exclusion.
PROVISION 03
Specifies that "possession of the United States" includes Puerto Rico, the Virgin Islands, and other listed possessions.
This clarifies the geographic scope of where companies must operate to qualify for the tax benefit.
PROVISION 04
Establishes an effective date for the amendments to apply to taxable years of foreign corporations beginning after December 31, 2023.
This determines when the tax changes will officially take effect for businesses.
SPONSORSHIP
1 + 0
D· U.S. Virgin Islands
YRS IN OFFICE
11
BILLS LED
20
ACTION TIMELINE
2 EVENTSJAN 13
Introduced in House
JAN 13
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 363
Congress119th
StatusIn Committee
IntroducedJan 13, 2025
Last actionJan 13, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED JAN 13, 2025
House BillHR 363GuamVirgin Islands
Territorial Economic Recovery Act
INTRODUCED JAN 13, 2025· LAST ACTION JAN 13, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
0
COMPLEXITY
Moderate
