Earned Income Tax Credit Equity for Puerto Rico Act of 2023

Bill 118 HR 257, also known as the Earned Income Tax Credit Equity for Puerto Rico Act of 2023, aims to address the disparity in the Earned Income Tax Credit (EITC) between Puerto Rico and the rest of the United States. The EITC is a refundable tax credit for low to moderate-income working individuals and couples, designed to help reduce poverty and incentivize work.

Currently, residents of Puerto Rico are not eligible for the federal EITC, despite paying federal payroll taxes. This bill seeks to rectify this by extending the EITC to residents of Puerto Rico, bringing them in line with residents of the 50 states and Washington D.C. This would provide much-needed financial relief to low-income families in Puerto Rico and help stimulate the local economy.

The bill also includes provisions to ensure that the EITC is administered effectively in Puerto Rico, including establishing outreach programs to inform residents of their eligibility and providing resources to help them claim the credit. Additionally, the bill requires the Government Accountability Office to conduct a study on the impact of extending the EITC to Puerto Rico and report its findings to Congress. Overall, the Earned Income Tax Credit Equity for Puerto Rico Act of 2023 aims to address a longstanding inequity in the tax code and provide much-needed support to low-income families in Puerto Rico.