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HR 399119th CongressIn Committee
To permanently extend the American Samoa economic development tax credit.
Introduced: Jan 14, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill, H.R. 399 introduced by Rep. Radewagen, would permanently extend the American Samoa Economic Development Tax Credit. It does this by removing the sunset and numeric limits that currently cap the credit and by making the extension apply to tax years beginning after December 31, 2021 (i.e., starting in 2022). In short, the bill preserves and makes permanent the tax incentive aimed at promoting economic development in American Samoa, instead of letting it expire or end after certain periods.
Key Points
- 1What the bill does: Permanently extends the American Samoa Economic Development Tax Credit by amending Section 119(d) of Division A of the Tax Relief and Health Care Act of 2006 (26 U.S.C. 30A note).
- 2What is being changed:
- 3- In paragraph (1), it removes the words “first 16” and the expiration phrase “and before January 1, 2022.”
- 4- In paragraph (2), it removes the words “first 10” and the expiration phrase “and before January 1, 2022.”
- 5Effective date: The amendments apply to taxable years beginning after December 31, 2021 (i.e., starting in 2022 and onward).
- 6Policy purpose: Provide long-term, predictable tax incentives to encourage investment and job creation in American Samoa by ensuring the credit does not sunset.
- 7Legislative status: Introduced in the House on January 14, 2025 and referred to the Committee on Ways and Means; sponsor listed as Mrs. Radewagen.
Impact Areas
Primary group/area affected:- Employers and businesses operating in American Samoa that qualify for the American Samoa Economic Development Tax Credit.- The American Samoa economy and local workforce, due to potential increases in investment and hiring.Secondary group/area affected:- Federal government and Treasury (impact on federal tax revenue due to the continued credit).- Tax administration and compliance, including the Internal Revenue Service, which administers and verifies eligibility for the credit.Additional impacts:- Business planning and investment incentives: With permanence, firms can plan longer-term investments without worrying about expiring credits.- Community and development effects: Potential improvements in local infrastructure, wage growth, and economic activity in American Samoa, depending on uptake and eligibility of the credit.
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