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Bill

HR 399

To permanently extend the American Samoa economic development tax credit.

119th Congress Introduced by Amata Radewagen

HR 399 permanently extends the American Samoa economic development tax credit, boosting investment, job creation, and business stability in the territory.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 399

Summary of HR 399: American Samoa Economic Development Tax Credit Extension

Purpose and Intent

HR 399 aims to permanently extend the American Samoa economic development tax credit, which is designed to stimulate economic growth and investment in American Samoa. This bill seeks to provide ongoing financial incentives for businesses operating in the territory, thereby supporting job creation and economic stability.

Key Provisions

The bill proposes amendments to Section 119(d) of the Tax Relief and Health Care Act of 2006, specifically addressing the following:

  1. Amendments to Tax Credit Duration:

    • Paragraph (1):
      • The current limitation of the tax credit is modified by removing the phrase "first 16" and the date restriction "and before January 1, 2022." This change effectively allows the tax credit to be available beyond the previously set expiration date.
    • Paragraph (2):
      • Similar adjustments are made by removing "first 10" and the date restriction "and before January 1, 2022," thereby extending the eligibility for the tax credit.

  2. Effective Date:

    • The amendments will apply to taxable years beginning after December 31, 2021, ensuring that businesses can benefit from the tax credit in the upcoming fiscal periods.

Impact

The extension of the American Samoa economic development tax credit is expected to have several significant impacts:

  • Economic Growth: By providing ongoing tax incentives, the bill aims to encourage new investments and support existing businesses in American Samoa, which may lead to job creation and economic diversification.
  • Business Stability: The permanence of the tax credit can enhance business planning and stability, allowing companies to make long-term investments without the uncertainty of tax credit expiration.
  • Local Employment: The anticipated growth in business activity may result in increased employment opportunities for residents of American Samoa.

Legislative Actions

  • Introduced: January 14, 2025
  • Referred to Committee: The bill was referred to the House Committee on Ways and Means on the same day it was introduced, indicating the next steps for discussion and potential amendments.

Conclusion

HR 399 represents a significant legislative effort to support the economy of American Samoa through the permanent extension of a vital tax credit. By removing previous limitations and ensuring the credit's availability for future taxable years, the bill aims to foster a more robust economic environment in the territory.

Compiled from official sources — confirm details with the bill’s official record.

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