To amend the Internal Revenue Code of 1986 to allow certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, and to extend such credits and deductions to possessions of the United States.

Bill 118 hr 4026, also known as the "Puerto Rico and Possessions Tax Relief Act of 2021," aims to amend the Internal Revenue Code of 1986 to provide tax relief for businesses and residents in Puerto Rico and other US possessions. The bill proposes allowing certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, as well as extending these benefits to possessions of the United States.

The main goal of this legislation is to provide economic support and incentives for businesses and individuals in Puerto Rico and other US territories. By allowing certain credits and deductions to be taken as refundable tax credits, businesses and residents in these areas will be able to receive financial assistance and relief, ultimately helping to stimulate economic growth and development.

Overall, Bill 118 hr 4026 seeks to provide much-needed tax relief for Puerto Rico businesses and residents, as well as extending these benefits to other US possessions. This legislation aims to support economic growth and development in these areas, ultimately benefiting the overall economy and well-being of the residents and businesses in Puerto Rico and other US territories.