American Samoa Economic Development Credit Included in Tax Bill at Amata’s Request
Washington, D.C. – Friday, Congresswoman Aumua Amata welcomed news that the Chairman's draft of the Tax Cut and Jobs Act released Thursday includes the American Samoa Economic Development Credit that she requested.
"I am pleased that this major tax legislation includes this priority for American Samoa's economy, and I appreciate Chairman Brady's response to my request," said Aumua Amata. "Renewing the American Samoa Economic Development Credit is essential to encouraging investment and preserving jobs. Changing this policy's extension from just one year at a time to six years will further allow for better business planning and more stability for our local economy."
Specifically, Chairman Kevin Brady of the House Ways and Means Committee introduced this week The Tax Cuts and Jobs Act of 2017, H.R. 1, and included at the request of Congresswoman Aumua Amata, "Section 4403. Extension of American Samoa Economic Development Credit (the ASEDC)."
This provision would extend the economic development credit for 6 years until January 1, 2023, and retroactively backdate the action to take effect from the beginning of this year, January 1, 2017.
This action is designed to encourage investment in the territory and create jobs by reducing federal taxes on income earned by qualifying employers in the territory. For perspective, a 2007 Department of Labor report declared that "the loss of this [Economic Development Credit] would be a damaging blow to the profits of the American Samoa canneries causing possible relocation."
"Ensuring the renewal of this economic development credit has been an ongoing priority to preserve jobs and promote investment in American Samoa," continued Congresswoman Amata. "It's important that our federal tax policy reflects an understanding of American Samoa's unique economic needs."