1. Short title This Act may be cited as the Territorial Economic Growth and Recovery Act of 2017 . 2. Repeal of limitation on cover over of distilled spirits taxes (a) In general Section 7652(f) of the Internal Revenue Code of 1986 is repealed. (b) Effective date The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2016. 3. Payments to United States territories and possessions (a) Earned income credit Section 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (n) Treatment of possessions (1) Payments to possessions (A) Mirror code possession The Secretary of the Treasury shall periodically (but not less frequently than annually) pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of this section (determined without regard to paragraph (2)) with respect to taxable years beginning after December 31, 2016. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (B) Other possessions The Secretary of the Treasury shall periodically (but no less frequently than annually) pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of this section for taxable years beginning after December 31, 2016, if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. (2) Coordination with credit allowed against United States income taxes No credit