Puerto Rico Economic Activity Credit Improvement Act of 1997

Puerto Rico Economic Activity Credit Improvement Act of 1997 - Amends the Internal Revenue Code to modify the requirements for corporations to be eligible for the Puerto Rico economic activity credit. Requires that, in determining the credit amount, the credit provisions be applied separately to each substantial line of business of the corporation. Removes provisions limiting, in taxable years beginning after 2001, the aggregate taxable income taken into account in determining the amount of the credit. Terminates the credit four years after Puerto Rico has, for three consecutive years, unemployment under and per capita income over specified percentages of the U.S. rates.

(Sec. 3) Amends provisions relating to the Puerto Rico and other possession tax credit to modify, with respect to possessions other than Puerto Rico, corporate eligibility requirements. Requires that, in determining the credit amount, the credit provisions be applied separately to each substantial line of business of the corporation. Modifies additional restricted credit requirements. Sets forth the circumstances in which the credit is available with regard to Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Terminates the credit, for any possession other than Puerto Rico, four years after the possession has, for three consecutive years, unemployment under and per capita income over specified percentages of the U.S. rates and poverty under a specified level.