Territorial Tax Equity and Economic Growth Act of 2025

This bill changes tax rules for people living in U.S. territories like Puerto Rico, Guam, and the Virgin Islands. Currently, people must live in a territory for at least 183 days per year to qualify for special tax benefits that let them exclude some income from federal taxes. The bill reduces this requirement to 122 days per year. It also changes the rules about what types of income count as U.S.-based income versus territory-based income, and gives the IRS more authority to limit certain tax requirements for personal property sales in the Virgin Islands.

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