The 30A American Samoa economic development tax credit is not expected to be included in the president’s major tax and spending bill, but could be made part of a second tax package later this year. KHJ News Washington DC correspondent Matt Kaye reports…
The tax-writing House Ways and Means and Senate Finance Committees have informed Congresswoman Uifa’atali Amata’s office that the expired 30A tax credit is more likely in a second tax bill—not in the President’s agenda-setting reconciliation bill.
The $8 million per year credit, which is key for the StarKist Samoa cannery, was last extended as part of the 2017 tax reform legislation and expired about three years ago.
But Amata’s office says House rules don’t allow for 30A credit—or an enhanced rum tax credit for Puerto Rico and the U.S. Virgin Islands—to move ahead in reconciliation, leaving both for a tax bill later in the year.
The Congresswoman continues to press for 30A credit, given its importance to American Samoa’s tuna industry.
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(Transc.) Amata: “This tax credit is a priority for American Samoa’s economy…it encourages investment and preserving the jobs we already have.”
Prior to 2016, Congress had extended the credit annually as part of a group of provisions known as “tax extenders.” But lawmakers failed to extend the provision that year, raising concerns that American Samoa’s remaining tuna cannery would either drastically reduce operations, or cease entirely, and relocate outside the U.S.
The 30A credit reduces federal taxes on income earned by qualifying U.S. firms operating in American Samoa, particularly in the tuna industry.
A 2007 U.S. Labor Department report stated that “the loss of the economic development credit would be a damaging blow to the profits of American Samoa’s then two canneries, causing possible relocation.”
Congresswoman Uifa’atali argues the development credit needs to be extended long-term to allow for greater economic and planning certainty for American Samoa and its businesses.
