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H.R. 365 119th Congress House

Territorial Tax Parity Act of 2025

Official title: 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: January 13, 2025 Introduced by: Stacey E. Plaskett Democratic · Virgin Islands See on congress.gov
Taxation American SamoaCaribbean areaGuamNorthern Mariana Islands
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Puerto RicoTax administration and collection, taxpayersTaxation of foreign incomeU.S. territories and protectoratesVirgin Islands
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jan 13, 2025
Referred to the House Committee on Ways and Means.
Jan 13, 2025
Introduced in House
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What's happening now January 13, 2025

Referred to the House Committee on Ways and Means.

 Plain-English summary Congressional Research Service

Territorial Tax Equity Parity Act of 2025

This bill modifies the income sourcing rules related to taxation of income from U.S. territories.

Under the bill, income is U.S.-sourced income or effectively connected to a U.S. trade or business only if attributable to an office or fixed place of business in the United States. (Currently, income is sourced to a U.S. territory and, thus, may be excluded from the gross income of a bona fide resident of a U.S. territory in calculating U.S. federal income tax if it is not U.S.-sourced income or effectively connected with a U.S. trade or business.)

    Further, the bill authorizes the Internal Revenue Service (IRS) to limit the income tax payment to the Virgin Islands required to treat income from the sale of certain personal property as foreign-sourced income for federal tax purposes. (Currently, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. The Internal Revenue Service (IRS) may limit the 10% tax payment requirement related to income from personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.)

     Bill text 1 version

    Source documents hosted by congress.gov.

     Committees of jurisdiction 1
     Lobbying activity 7

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    Cite this page click to expand
    APA
    U.S. Congress. (2026). H.R. 365: Territorial Tax Parity Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-HR-365/
    MLA
    "H.R. 365: Territorial Tax Parity Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-365/.
    Bluebook (legal)
    H.R. 365, 119th Cong. (2026), https://openamerica.io/bill/119-HR-365/.
    Markdown link
    [H.R. 365: Territorial Tax Parity Act of 2025](https://openamerica.io/bill/119-HR-365/)
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