Congressional Legislation · bill 119hr365 · built from our database

Only the left has signed this so far (Bill Ranking)

Territorial Tax Parity Act of 2025

H.R. 365 · 119th Congress (2025-2026)

H.R. 365119TH CONGRESSINTRODUCED 01/13/2025DEL. PLASKETTD-VI · SPONSORLeft: no (Sponsor Ranking)Lean left: DW-NOMINATE -0.47 (Sponsor Ranking)Center: no (Sponsor Ranking)Lean right: no (Sponsor Ranking)Right: no (Sponsor Ranking)LEAN LEFT(SPONSOR RANKING)TAXATION

1 member · Left 1 · Center 0 · Right 0 (Bill Ranking)

SponsorDel. Plaskett, Stacey E. (D-VI) (Introduced 01/13/2025)
Sponsor Voting RecordLean left · DW-NOMINATE -0.47 · measured from every roll-call vote this member has cast (voteview.com) (Sponsor Ranking)
Support
LLLCLRR

support across the spectrum: 1 member signed on (Bill Ranking) this bill: sponsor + current cosponsors, each once

CommitteesHouse - Ways and Means Committee
Latest Action01/13/2025 Referred to the House Committee on Ways and Means.
Roll Call VotesThere have been no roll call votes
Sourceview on congress.gov →
IntroducedPassed HousePassed SenateResolving DifferencesTo PresidentBecame Law

Summary (1)

Introduced in House (01/13/2025)

Territorial Tax Equity Parity Act of 2025

This bill modifies the income sourcing rules related to taxation of income from U.S. territories.

Under the bill, income is U.S.-sourced income or effectively connected to a U.S. trade or business only if attributable to an office or fixed place of business in the United States. (Currently, income is sourced to a U.S. territory and, thus, may be excluded from the gross income of a bona fide resident of a U.S. territory in calculating U.S. federal income tax if it is not U.S.-sourced income or effectively connected with a U.S. trade or business.)

    Further, the bill authorizes the Internal Revenue Service (IRS) to limit the income tax payment to the Virgin Islands required to treat income from the sale of certain personal property as foreign-sourced income for federal tax purposes. (Currently, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. The Internal Revenue Service (IRS) may limit the 10% tax payment requirement related to income from personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.)

    Text (1)

    Introduced in House (IH)

    119 HR 365 IH: Territorial Tax Parity Act of 2025 U.S. House of Representatives 2025-01-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS1st SessionH. R. 365IN THE HOUSE OF REPRESENTATIVESJanuary 13, 2025Ms. Plaskett introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo 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.1.Short titleThis Act may be cited as the Territorial Tax Parity Act of 2025.2.Modification to source rules involving possessions(a)In generalSection 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 salesSection 865(j)(3) of such Code is amended by inserting , 932, after

    931.(c)Effective dateThe amendments made by this section shall apply to taxable years beginning after December 31, 2024.

    The bill's own words, from our database (synced from the GPO BILLS XML); paragraph breaks added at the bill's section boundaries, nothing else changed.

    All Actions (3)

    DateChamberAll Actions
    01/13/2025Library of CongressIntroduced in House
    01/13/2025Library of CongressIntroduced in House
    01/13/2025House floor actionsReferred to the House Committee on Ways and Means.

    Titles (3)

    Title TypeTitle
    Display TitleTerritorial Tax Parity Act of 2025
    Short Title(s) as IntroducedTerritorial Tax Parity Act of 2025
    Official Title as IntroducedTo 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.

    Amendments (0)

    There are no amendments to this bill.

    Cosponsors (0)

    There are no cosponsors of this bill.

    Committees (1)

    CommitteeActivity
    House - Ways and Means Committee01/13/2025 Referred To

    Related Bills (0)

    No related bill information was received for H.R. 365.

    Subjects (9)

    Policy Area: Taxation

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