The proposed legislation aims to modify the Internal Revenue Code of 1986, specifically concerning the source rules for income derived from personal property sales within United States possessions. It achieves this by amending Section 865(j)(3) to include references to Section 932, which pertains to the coordination of U.S. and Virgin Islands income taxes. This amendment effectively extends the application of these source rules to the Virgin Islands , ensuring consistency with other U.S. territories like Guam, American Samoa, and the Northern Mariana Islands. The primary purpose is to establish greater tax parity and clarification regarding the sourcing of income from personal property sales across various U.S. possessions. These modifications are slated to take effect for all taxable years commencing after December 31, 2023 .