COMMITTEE ON ECONOMIC DEVELOPMENT AND 
AGRICULTURE 
05/28/2026-SPECIAL ORDERED TO THE FLOOR 
 
BILL NO. 
36-0283 
 
Thirty-Sixth Legislature of the Virgin Islands 
 
 
 
May 8, 2026 
 
 
 
An act amending title 29, Virgin Islands Code, chapter 12, subchapter I by adding a new section 
713c to limit income tax refunds for economic development program beneficiaries 
 
 
 
PROPOSED BY: 
 
 
Senator Avery L. Lewis 
Be it enacted by the Legislature of the Virgin Islands: 
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SECTION 1. Title 29 Virgin Islands Code, chapter 12, subchapter I, is amended by 
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adding the following new section 713c and renumbering the remaining sections accordingly: 
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Ҥ713c.  Limitation on income tax refunds for beneficiaries 
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(a) 
Notwithstanding the provisions of section 713b, and except as provided in 
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subsections (h) and (i) of this section, no income tax refund attributable to income subject to 
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benefits authorized by this chapter shall be allowed or paid to a beneficiary certified under an 
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economic development program, unless the cumulative income tax benefits received by such 
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beneficiary under this chapter have been fully offset as provided in this section. 
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(b) 
Prior to paying any income tax refund to a beneficiary, the Bureau of Internal 
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Revenue shall determine the cumulative amount of income tax benefits received by the 
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beneficiary during the entire period of the beneficiary’s participation in the economic 
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development program granting the benefits authorized pursuant to this chapter. 
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(c) 
For purposes of this section, the term “income tax benefits” means any reduction 
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of income tax liability granted pursuant to §713b of this title. 
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(d) 
Any income tax refund otherwise allowable to a beneficiary that is attributable to 
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income subject to benefits authorized by this chapter shall be applied as an offset against the 
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cumulative income tax benefits determined pursuant to subsection (b) of this section, without 
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regard to the taxable year in which such benefits were received. 
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(e) 
The amount applied as an offset for any taxable year shall not exceed the amount 
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of the income tax refund otherwise allowable for such taxable year.  Any remaining balance of 
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cumulative income tax benefits shall be carried forward and applied against income tax refunds 
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allowable for subsequent taxable years. 
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(f) 
No income tax refund attributable to income subject to EDC benefits shall be 
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allowed or paid to a beneficiary until the cumulative income tax benefits determined pursuant 
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to subsection (b) of this section have been fully offset. 
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(g) 
The Bureau of Internal Revenue may promulgate regulations necessary to 
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implement the provisions of this section. 
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BILL SUMMARY 
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This bill amends title 29, Virgin Islands Code, chapter 12, subchapter I by limiting the 
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amount of income tax refund that a beneficiary of an economic development program may 
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receive by applying an offset to their tax benefits. 
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BR26-0974/March 17, 2026/NS 
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