Introduced in House

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 365 Introduced in House (IH)] 119th CONGRESS 1st Session H. R. 365 To amend the Internal Revenue Code of 1986 to modify the residence and source rules to provide for economic recovery in the possessions of the United States. _______________________________________________________________________ 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 modify the residence and source rules to provide for economic recovery in the possessions of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

SECTION 1. SHORT TITLE. This Act may be cited as the ``Territorial Tax Parity Act of 2025''.

SEC. 2. MODIFICATION TO SOURCE RULES INVOLVING POSSESSIONS.

SEC. 2. MODIFICATION TO SOURCE RULES INVOLVING POSSESSIONS. (a) In General.--Section 937(b)(2) of the Internal Revenue Code of 1986 is amended by inserting ``, but only to the extent such income is attributable to an office or fixed place of business within the United States (determined under the rules of section 864(c)(5))'' before the period at the end. (b) Source Rules for Personal Property Sales.--Section 865(j)(3) of such Code is amended by inserting ``, 932,'' after ``931''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2024.