Territorial Tax Parity and Clarification Act

This bill changes how the tax code decides where income comes from when people or businesses sell personal property in U.S. possessions. It aims to make the rules clearer and more even across these areas, so that taxes are sourced in a more consistent way for these sales.

Key points:

• Who is affected: People and businesses with sales of personal property in U.S. possessions.
• What changes: The tax “source rules” for these sales are modified to provide parity and clarification, as reflected in the act’s short title and purpose.
• When: Applies to tax years beginning after December 31, 2023.