WASHINGTON - U.S. Representative Edolphus “Ed” Towns (NY-10) and nine bipartisan Members of Congress, including lead co-sponsors U.S. Representative Pedro Pierluisi of Puerto Rico and U.S. Representatives Debbie Wasserman-Shultz (FL-20) and John L. Mica (FL-07), introduced legislation recently to make residents of Puerto Rico fully eligible for the refundable portion of the child tax credit.  The legislation, H.R. 3718, broadens the Internal Revenue Code of 1986 that currently excludes from the child tax credit Puerto Rican families with less than three children.  At this time, the child tax credit is available to U.S. citizens in the 50 states, including residents of Puerto Rico who move to a state.

Expanding the child tax credit to Puerto Rican families with one child or more will also inject critical funds into Puerto Rico’s economy by directly boosting the incomes of the Island’s working families.  Puerto Rico has been in an official recession for over three years and its unemployment rate is 15.1 percent, which is significantly higher than the national average of 9.8 percent.  

“Denying Puerto Rican families’ access to proven United States economic recovery measures is unproductive and unjust,” said Rep. Towns.  “The extension of the child tax credit would provide a much needed stimulus to the ailing Puerto Rican economy, increase the incentives to work in the paid labor force, and alleviate poverty on the island.”

Rep. Pierluisi, who is the sole representative in Congress of Puerto Rico and its four million American citizens said, “Congressman Towns is once again showing his leadership in fighting for the disadvantaged; in this case, the needs of thousands of low income working families in Puerto Rico. It is time for correcting an obvious mistake in the design and administration of the federal tax credit program, and I thank Congressman Towns for taking the lead in doing so.”

Congresswoman Debbie Wasserman Schultz (FL-20) who is another lead cosponsor of the bill said, “U.S. citizens living in Puerto Rico should have the same rights and privileges afforded to those Americans living on the mainland. The exclusion of any American living in Puerto Rico from being eligible for the child tax credit is simply unjust. Congress must act to rectify this inequity. This important legislation, which would make all residents of Puerto Rico fully eligible for the child tax credit, is necessary to ensure that all American families living in Puerto Rico have an opportunity to receive the same tax credits as those of us living here on the mainland.”

The child tax credit is available to qualifying Puerto Rican families and based on payroll taxes, which all U.S. citizens residing in Puerto Rico pay regardless of family size.  Residents of Puerto Rico also share in the duties of their fellow U.S. citizens, and in fact, the Puerto Rican military participation rate is the second highest in the country.     

The legislation has been referred to the House Committee on Ways and Means for action.

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