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HR 365
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Territorial Tax Parity Act of 2025

To amend the Internal Revenue Code of 1986 to modify the residence and source rules to provide for economic recovery in the possessions of the United States.

Introduced Jan 13, 2025

Latest action (Jan 13, 2025) Referred to the House Committee on Ways and Means.

Referred to
Ways and Means Committee
Policy area
Taxation
Issues
Economy & Taxes
Legislative subjects (9)
American SamoaCaribbean areaGuamNorthern Mariana IslandsPuerto RicoTax administration and collection, taxpayersTaxation of foreign incomeU.S. territories and protectoratesVirgin Islands

Summary

This bill modifies the Internal Revenue Code provisions that allow residents of U.S. territories to exclude certain income from U.S. taxation. The bill clarifies that possession source income can only be excluded if it is attributable to an office or fixed place of business within the United States. It also extends the source rules for personal property sales to apply to Puerto Rico residents. The changes apply to taxable years beginning after December 31, 2024.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Actions (2)
  1. Jan 13, 2025 Referred to the House Committee on Ways and Means. · house
  2. Jan 13, 2025 Introduced in House

More bills on these subjects (8)

Other bills that carry the most legislative subjects in common with this one (topical discovery — distinct from the procedural related bills above).

  • HR 364 — Territorial Tax Equity and Economic Growth Act of 2025 (shares 9 subjects)
  • HR 363 — Territorial Economic Recovery Act (shares 7 subjects)
  • HR 191 — Inflation Reduction Act of 2025 (shares 7 subjects)
  • S 2289 — Healthy Moms and Babies Act (shares 6 subjects)
  • HR 6472 — Territorial Student Access to Higher Education Act (shares 6 subjects)
  • HR 3400 — TRAVEL Act of 2025 (shares 6 subjects)
  • HR 4754 — Department of the Interior, Environment, and Related Agencies Appropriations Act, 2026 (shares 5 subjects)
  • S 2296 — National Defense Authorization Act for Fiscal Year 2026 (shares 4 subjects)

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

  • HR 364 — Territorial Tax Equity and Economic Growth Act of 2025 · Introduced Jan 13, 2025 · Cong. 119 88%
  • HR 367 — Territorial Tax Parity and Clarification Act · Introduced Jan 13, 2025 · Cong. 119 80%
  • HR 4280 — Bipartisan Tax Fairness Act of 2025 · Introduced Jul 2, 2025 · Cong. 119 76%
  • HR 5336 — Equal Tax Act · Introduced Sep 11, 2025 · Cong. 119 76%
  • HR 368 — Territorial Tax Parity and Fairness Act · Introduced Jan 13, 2025 · Cong. 119 75%
  • HR 363 — Territorial Economic Recovery Act · Introduced Jan 13, 2025 · Cong. 119 74%

Text versions (1)
  • Introduced in House · Jan 13, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

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 modify the residence and source rules to provide for economic recovery in the possessions of the United States.

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 Tax Parity Act of 2025”.

SEC. 2. MODIFICATION TO SOURCE RULES INVOLVING POSSESSIONS.

(a) In General.—Section 937(b)(2) of the Internal Revenue Code of 1986 is amended by inserting “, but only to the extent such income is attributable to an office or fixed place of business within the United States (determined under the rules of section 864(c)(5))” before the period at the end.

(b) Source Rules for Personal Property Sales.—Section 865(j)(3) of such Code is amended by inserting “, 932,” after “931”.

(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024. <all>

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