{"bill":{"id":"119-hr-364","congress":119,"type":"HR","number":364,"title":"Territorial Tax Equity and Economic Growth Act of 2025","originChamber":"House","introducedDate":"2025-01-13","sponsors":[{"bioguideId":"P000610","fullName":"Del. Plaskett, Stacey E. [D-VI]","party":"D","state":"VI","district":null}],"cosponsorsCount":0,"latestAction":{"actionDate":"2025-01-13","text":"Referred to the House Committee on Ways and Means."},"policyArea":"Taxation","subjects":["American Samoa","Caribbean area","Guam","Northern Mariana Islands","Puerto Rico","Tax administration and collection, taxpayers","Taxation of foreign income","U.S. territories and protectorates","Virgin Islands"],"actions":[{"date":"2025-01-13","text":"Referred to the House Committee on Ways and Means.","type":"IntroReferral","chamber":"House floor actions","hasVote":false},{"date":"2025-01-13","text":"Introduced in House","type":"IntroReferral","chamber":"Library of Congress","hasVote":false},{"date":"2025-01-13","text":"Introduced in House","type":"IntroReferral","chamber":"Library of Congress","hasVote":false}],"summary":"<p><strong>Territorial Tax Equity and Economic Growth Act</strong> <strong>of 2025</strong></p><p>This bill lowers the residency requirements and modifies the income sourcing rules related to taxation of income from U.S. territories.</p><p>Currently, bona fide residents of a U.S. territory may exclude income sourced to the territory in calculating U.S. federal income tax. A bona fide resident of a territory is a person that, in part, is present in the territory for at least 183 days in a tax year. Income is sourced to a U.S. territory if it is not U.S.-sourced income or effectively connected with a U.S. trade or business.</p><p>This bill</p><ul><li>reduces the presence requirement to 122 days,</li><li>specifies that 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, and</li><li>specifies that income from U.S.-based activities that are preparatory or auxiliary may not be considered U.S.-sourced income.</li></ul><p>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&nbsp;10% is paid to&nbsp;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. This bill&nbsp;expands the IRS’s authority to include&nbsp;limiting&nbsp;the&nbsp;tax requirement for personal property sales in the Virgin Islands.</p>","updateDate":"2026-03-03T15:05:31Z"},"markets":[],"stateBills":[],"meta":{"sources":["congress.gov"],"latencyMs":297,"ts":"2026-04-19T09:55:42.546Z"},"nextActions":{"inspect":[],"related":[{"description":"Search related legislation","method":"GET","url":"/api/public/query-gov?q=Territorial%20Tax%20Equity%20and%20Economic%20Growth%20Act%20of%202025"}]}}