REQUIREMENT FOR INVESTMENT OF SECTION 936 FUNDS IN CARIBBEAN BASIN COUNTRIES.

SEC. 227. REQUIREMENT FOR INVESTMENT OF SECTION 936 FUNDS IN CARIBBEAN BASIN COUNTRIES. (a) General Rule.— Paragraph (4) of section 936(d) of the Internal Revenue Code of 1986 (relating to investment in Caribbean Basin countries) is amended by adding at the end thereof the following new subparagraph: “(D) Requirement for investment in Caribbean basin countries.— “(i) In general.— For each calendar year, the government of Puerto Rico shall take such steps as may be necessary to ensure that at least $100,000,000 of qualified Caribbean Basin country investments are made during such calendar year. “(ii) Qualified Caribbean basin country investment.— For purposes of clause (i), the term ‘qualified Caribbean Basin country investment’ means any investment if— “(I) the income from such investment is treated as qualified possession source investment income by reason of subparagraph (A), and “(II) such investment is not (directly or indirectly) a refinancing of a prior investment (whether or not such prior investment was a qualified Caribbean Basin country investment).” (b) Effective Date.— The amendment made by subsection (a) shall apply to calendar years after 1989.