H.R. 189 – Territorial Tax Parity Act of 2017

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Updated April 15, 2026 at 10:56 AM UTC

The Territorial Tax Parity Act of 2017 updates the Internal Revenue Code to treat more income earned in U.S. territories as U.S.-source income. By tying source rules to a fixed place of business and adjusting personal property sale provisions, the bill aims to support economic recovery in U.S. possessions. It applies to taxpayers and businesses operating in those territories for tax years beginning after 2017.

Key Provisions

Changes the definition of U.S.-source income so that earnings attributable to an office or fixed place of business in the United States (including its territories) are treated as U.S.-source under the tax code.
Adds a new reference ("932") into the rules governing the source of income from personal property sales, updating the existing sequence of sections.
Makes these changes effective for tax years that start after December 31, 2017.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 3, 2017

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HouseIntro Referral

Introduced in House

January 3, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 3, 2017

Bill Text

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Introduced in HouseIssued January 3, 2017

I

115th CONGRESS

1st Session

H. R. 189

IN THE HOUSE OF REPRESENTATIVES

January 3, 2017

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 provide for economic recovery in the possessions of the United States.

1.

Short title

This Act may be cited as the Territorial Tax Parity Act of 2017.

2.

Modification to source rules involving possessions

(a)

Source rules

Section 937(b)(2) of the Internal Revenue Code of 1986 is amended by striking the period at the end and inserting the following: 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))..

(b)

Source rules for personal property sales

Section 865(j)(3) of such Code is amended by adding 932, after 931, and before 933..

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2017.