123STA T . 31 5PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9sy s temhadb ee ni ne f fe c tins u ch po ssession .T hep r ecedin g sentence sha l l not apply w ith respect to any possession of the U nited S tates unless such possession has a plan , which has been appro v ed by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2)CO O RDINAT ION W IT HC R E DIT A L LOWED A G AIN S T U NITED STATES INCO M ETA X ES. — Section 2 5A (i)( 6 ) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States. ( 3 ) D E F INITIONS AND S P ECIAL RULES.— (A) P OSSESSION OF THE UNITED STATES.— F or purposes of this subsection, the term ‘ ‘possession of the United States ’ ’ includes the Commonwealth of Puerto R ico and the Commonwealth of the N orthern M ariana I slands. ( B ) MIRROR CODE TAX S Y STEM.—For purposes of this subsection, the term ‘‘mirror code ta x system’’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (C) TREATMENT OF PAYMENTS.—For purposes of section 1 32 4 (b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1 98 6 by reason of subsection (i)(6) of such section (as added by this section). (d) E FFECTI V E DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2 0 08. (e) APPLICATION OF E G TRRA SUNSET.—The amendment made by subsection (b)(1) shall be sub j ect to title I X of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. (f) TREASURY STUDIES REGARDING EDUCATION INCENTIVES.— (1) STUDY REGARDING COORDINATION WITH NON - TAX STU- DENT FINANCIAL ASSISTANCE.—The Secretary of the Treasury and the Secretary of Education, or their delegates, shall— (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the H igher Education Act of 1965 to maximi z e their effective- ness at promoting college affordability, and (B) examine ways to expedite the delivery of the tax credit. (2) STUDY REGARDING INCLUSION OF COMMUNITY SERVICE RE Q UIREMENTS.—The Secretary of the Treasury and the Sec- retary of Education, or their delegates, shall study the feasi- bility of re q uiring including community service as a condition of ta k ing their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. (3) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. 26USC 2 4note. 26 USC 24 note.
