1. Short title This Act may be cited as the Territory Economic Development Tax Credit Act . 2. Credit for economic activity in possessions of the United States (a) In general Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 30E. Possession economic activity credit (a) Allowance of credit (1) In general Except as otherwise provided in this section, in the case of a qualified domestic corporation, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the amount determined under paragraph (2). (2) Determination of amount The amount determined under this paragraph is— (A) in the case of a qualified domestic corporation described in subsection (b)(1)(A), the lesser of— (i) the portion of the tax which is attributable to the taxable income, from sources without the United States, from— (I) the active conduct of a trade or business within a possession of the United States, or (II) the sale or exchange of substantially all of the assets used by the taxpayer in the active conduct of such trade or business, or (ii) the wage and asset limitation with respect to such corporation, and (B) in the case of a qualified domestic corporation described in subsection (b)(1)(B), the lesser of— (i) the intangible low-taxed income tax amount, or (ii) the sum of the qualified domestic corporation's pro rata share (determined in a manner similar to the manner provided in section 951A(e)(1)) of the wage and asset limitations with respect to each foreign qualified corporation of which such qualified domestic corporation is a United States shareholder. (b) Qualified domestic corporation