Territorial Economic Recovery Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 363 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 363 To amend the Internal Revenue Code of 1986 to exclude certain amounts from the tested income of controlled foreign corporations, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 13, 2025 Ms. Plaskett introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude certain amounts from the tested income of controlled foreign corporations, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Territorial Economic Recovery Act''. SEC. 2. INCOME OF CERTAIN QUALIFIED POSSESSION CORPORATIONS EXCLUDED FROM TESTED INCOME. (a) In General.--Section 951A of the Internal Revenue Code of 1986 is amended-- (1) in subsection (c)(2)(A)(i), by striking ``and'' at the end of subclause (IV), by striking ``over'' at the end of subclause (V) and inserting ``and'', and by adding at the end the following new subclause: ``(VI) any income of a qualified possession corporation that is effectively connected with the active conduct of a trade or business within a possession of the United States, over''; and (2) by adding at the end the following new subsections: ``(g) Possession of the United States.--For purposes of this section, the term `possession of the United States' means Puerto Rico, the Virgin Islands, and any specified possession described in section 931(c). ``(h) Qualified Possession Corporation.--For purposes of this section, the term `qualified possession corporation' means any controlled foreign corporation for any taxable year, if, for the 3-year peri