S.Amdt. 1775

SA 1775. Mr. MENENDEZ (for himself and Mr. Nelson) submitted an
amendment intended to be proposed by him to the bill H.R. 1, to provide
for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018; which was ordered to lie
on the table; as follows:

At the appropriate place, insert the following:

SEC. __. ECONOMIC GROWTH AND FAIRNESS FOR PUERTO RICO.

(a) Puerto Rico Residents Eligible for Earned Income Tax
Credit.--
(1) In general.--Section 32 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(n) Residents of Puerto Rico.--
``(1) In general.--In the case of residents of Puerto
Rico--
``(A) the United States shall be treated as including
Puerto Rico for purposes of subsections (c)(1)(A)(ii)(I) and
(c)(3)(C),
``(B) subsection (c)(1)(D) shall not apply to nonresident
alien individuals who are residents of Puerto Rico, and
``(C) adjusted gross income and gross income shall be
computed without regard to section 933 for purposes of
subsections (a)(2)(B) and (c)(2)(A)(i).
``(2) Limitation.--The credit allowed under this section by
reason of this subsection for any taxable year shall not
exceed the amount, determined under regulations or other
guidance promulgated by the Secretary, that a similarly
situated taxpayer would receive if residing in a State.''.
(2) Child tax credit not reduced.--Subclause (II) of
section 24(d)(1)(B)(ii) of such Code is amended by inserting
before the period ``(determined without regard to section
32(n) in the case of residents of Puerto Rico)''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2016.
(b) Equitable Treatment for Residents of Puerto Rico With
Respect to the Refundable Portion of the Child Tax Credit.--
(1) In general.--Section 24(d)(1) of the Internal Revenue
Code of 1986 is amended by inserting ``or section 933'' after
``section 112''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31,
2016.
(c) Permanent Section 199 Manufacturing Credit.--
(1) Restoring manufacturing credit.--This Act is amended by
striking section 13305.
(2) Making puerto rico treatment permanent.--Section
199(d)(8) of the Internal Revenue Code of 1986 is amended by
striking subparagraph (C).
(d) Rum Cover Over.--
(1) In general.--Section 7652(f)(1) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(1) $13.50, or''.
(2) Transfer of revenue to puerto rico conservation
trust.--Section 7652(e) of the Internal Revenue Code of 1986
is amended--
(A) in paragraph (1), by striking ``All taxes collected''
and inserting ``Except as provided in paragraph (5), all
taxes collected''; and
(B) by adding at the end the following:
``(5) Puerto rico conservation trust.--Out of any amounts
that would otherwise be covered into the treasury of Puerto
Rico under this subsection for taxes collected under section
5001(a)(1) on rum imported into the United States, an amount
equal to $0.46 for each proof gallon of such rum shall be
transferred to the Puerto Rico Conversation Trust.''.
(3) Effective date.--The amendments made by this subsection
shall apply to distilled spirits brought into the United
States after December 31, 2016.
______