House agrees to pay Earned Income Tax Credit

Press Release

A cover-over of federal funds to the Commonwealth to enable payment of the Earned Income Tax Credit is included in the Puerto Rico Earthquake Supplemental (H.R. 5687), which passed the House. I first introduced legislation in 2015 to make funding available for this credit. It can eliminate income taxes for lower-income working families and even increase their refund. Governor Torres made obtaining a federal cover-over a central goal of his Section 902 consultations the following year. Although the House has now passed the necessary legislation, the White House says the President will veto it. That could always change, of course. So, to prepare, I have alerted Commonwealth officials, because they will need to repeal Public Law 11-25 to get the federal funds. Public Law 11-25 is a 100 percent tax on the Earned Income Tax Credit for anyone in the Marianas who is eligible. The Joint Committee on Taxation estimates the Earned Income Tax credit cover-over to Marianas taxpayers would be $107 million over 10 years.

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