The sweeping tax reform bill introduced by House Republicans this week, includes an extension of the American Samoa Economic Development Credit.

Congresswoman Aumua Amata Radewagen pressed Ways and Means Chair Kevin Brady to include “Section 4403,” that extends the credit for 6-years.

The credit would also be extended retroactively to last January 1st,reducing federal taxes on income earned by qualifying US firms in American Samoa, especially in the tuna industry.

The economic development credit was designed to encourage investment in the territory and create jobs.

Amata stressed the importance of tax relief earlier this year, after President Trump’s State of the Union address.

She argued his goals of deregulation and lower taxes are in line with American Samoa’s priorities:

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A 2007 Labor Department report declared that “the loss of the economic development credit would be a damaging blowto the profits of the American Samoa canneries causing possible relocation.”

But amata Congresswoman Radewagen’s provision, unlike previous annual extensions, is multi-year, providing more economic stability and improved planning.

Since 2006, Congress extended the credit only yearly, as part of a group of tax provisions collectively known as the “tax extenders.”
But Congress did not extend the provision last year, raising concern the remaining cannery would either drastically reduce operations or cease them entirely, and relocate outside the US.

Congresswoman Radewagen argues that extending the American Samoa Economic Development Credit longer term, allows for much-needed economic and planning certainty for the territory.