H.R. 1697 — Child Tax Credit Relief for Puerto Rican Families Act

This section expands eligibility for the refundable portion of the child tax credit to residents of Puerto Rico whose Puerto Rico-source income is excluded from gross income under IRC §933 (i.e., by adding §933 to the existing exception in §24(d)(1) for Virgin Islands residents under §112). The change applies to taxable years beginning after December 31, 2024.

This section modifies the definition of Social Security taxes for purposes of calculating the refundable portion of the child tax credit by directing that IRC §24(d)(2)(A) be applied—(1) in clause (i), by using "twice the amount" (instead of "the amount"); and (2) by striking "50 percent of" each place it appears. (Thus, this increases the Social Security taxes taken into account, allowing a larger refundable child tax credit.) The changes apply to taxable years beginning after December 31, 2024.