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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.

12/15/2023, 3:59 PM

Summary of Bill HR 4026

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.

Congressional Summary of HR 4026

This bill extends the tax credit for expenditures to provide access to disabled individuals to U.S. possessions and makes such credit refundable for bona fide residents of Puerto Rico.

The bill permits Puerto Rican residents a refundable tax credit for 21% of amounts otherwise allowable as a tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. It also requires payment to U.S. possessions for taxable years beginning after December 31, 2022, of an amount equal to the their losses due to the application of the credits and deductions by this bill.

Current Status of Bill HR 4026

Bill HR 4026 is currently in the status of Bill Introduced since June 12, 2023. Bill HR 4026 was introduced during Congress 118 and was introduced to the House on June 12, 2023.  Bill HR 4026's most recent activity was Referred to the House Committee on Ways and Means. as of June 12, 2023

Bipartisan Support of Bill HR 4026

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 4026

Primary Policy Focus

Taxation

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