Sec. 9612. APPLICATION OF CHILD TAX CREDIT IN POSSESSIONS
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## SEC. 9612 APPLICATION OF CHILD TAX CREDIT IN POSSESSIONS ###
(a)In General **[**[26 U.S.C. 24](/us/usc/t26/s24)**]** Section 24 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection: > > ### “(k) Application of Credit in Possessions > > > #### “(1) Mirror code possessions > > > ##### “(A) In general > > The Secretary shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of this section (determined without regard to this subsection) with respect to taxable years beginning after 2020. Such amounts shall be determined by the Secretary based on information provided by the government of the respective possession. > > > ##### “(B) Coordination with credit allowed against united states income taxes > > No credit shall be allowed under this section for any taxable year to any individual to whom a credit is allowable against taxes imposed by a possession of the United States with a mirror code tax system by reason of the application of this section in such possession for such taxable year. > > > ##### “(C) Mirror code tax system > > For purposes of this paragraph, the term ‘mirror code tax system’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. > > > #### “(2) Puerto rico > > > ##### “(A) Application to taxable years in 2021 > > > ###### “(i) > > For application of refundable credit to residents of Puerto Rico, see subsection (i)(1). > > > ###### “(ii) > > For nonapplication of advance payment to residents of Puerto Rico, see section 7527A(e)(4)(A). > > > ##### “(B) Application to taxable years after 2021 > > In the case of any bona fide resident of Puerto Rico (within the meaning of section 937(a)) for any taxable year beginning after December 31, 2021— > > > ###### “(i) > > the credit determined under this section shall be allowable to such resident, and > > > ###### “(ii) > > subsection (d)(1)(B)(ii) shall be applied without regard to the phrase ‘in the case of a taxpayer with 3 or more qualifying children’. > > > #### “(3) American samoa > > > ##### “(A) In general > > The Secretary shall pay to American Samoa amounts estimated by the Secretary as being equal to the aggregate benefits that would have been provided to residents of American Samoa by reason of the application of this section for taxable years beginning after 2020 if the provisions of this section had been in effect in American Samoa (applied as if American Samoa were the United States and without regard to the application of this section to bona fide residents of Puerto Rico under subsection (i)(1)). > > > ##### “(B) Distribution requirement > > Subparagraph
(A)shall not apply unless American Samoa has a plan, which has been approved by the Secretary, under which American Samoa will promptly distribute such payments to its residents. > > > ##### “(C) Coordination with credit allowed against united states income taxes > > > ###### “(i) In general > > In the case of a taxable year with respect to which a plan is approved under subparagraph (B), this section (other than this subsection) shall not apply to any individual eligible for a distribution under such plan. > > > ###### “(ii) Application of section in event of absence of approved plan > > In the case of a taxable year with respect to which a plan is not approved under subparagraph (B)— > > > ###### “(I) > > if such taxable year begins in 2021, subsection (i)(1) shall be applied by substituting ‘bona fide resident of Puerto Rico or American Samoa’ for ‘bona fide resident of Puerto Rico’, and > > > ###### “(II) > > if such taxable year begins after December 31, 2021, rules similar to the rules of paragraph (2)(B) shall apply with respect to bona fide residents of American Samoa (within the meaning of section 937(a)). > > > #### “(4) Treatment of payments > > For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.” > . ###
(b)Effective Date **[**[26 U.S.C. 24 note](/us/usc/t26/s24)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2020. ### PART 3 EARNED INCOME TAX CREDIT
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Sec. 9612
APPLICATION OF CHILD TAX CREDIT IN POSSESSIONS
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