119-hr2982

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2982 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 2982

To amend the Internal Revenue Code of 1986 to modify the application of 
 the sourcing rules for digital asset income of Puerto Rican residents.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 21, 2025

 Ms. Velazquez (for herself, Ms. Ocasio-Cortez, and Mrs. Ramirez) 
 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 modify the application of 
 the sourcing rules for digital asset income of Puerto Rican residents.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Fair Taxation of Digital Assets in 
Puerto Rico Act of 2025''.

SEC. 2. TREATMENT OF DIGITAL ASSET INCOME BY PUERTO RICAN RESIDENTS.

    (a) In General.--

Section 865 of the Internal Revenue Code of 1986 
is amended by redesignating subsections
            (i) and

    (j) as subsections

    (j) and

    (k) and by inserting after subsection

    (h) the following new 
subsection:
 ``
            (i) Digital Asset Income of Puerto Rican Residents.--
 ``

    (1) In general.--Notwithstanding any other provision of 
 this title, in the case of an individual described in 

section 933, any income derived in connection with--
 ``
        (A) any receipt of any digital asset in 
 connection with--
 ``
            (i) mining, staking, or any similar 
 activity with respect to any digital asset, or
 ``
            (ii) holding any digital asset (including 
 any fork or air drop of any digital asset), or
 ``
        (B) any sale, exchange, or other disposition of a 
 digital asset,
 shall not be treated for purposes of this title as derived from 
 sources within Puerto Rico.
 ``

    (2) Treatment of financial interests.--For purposes of 
 this subsection, any financial interest in a digital asset 
 shall be treated as a digital asset.
 ``

    (3) Digital asset.--For purposes of this subsection, the 
 term `digital asset' means any digital representation of value 
 which is recorded on a cryptographically-secured distributed 
 ledger.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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