H.R. 399: To permanently extend the American Samoa economic development tax credit.

This bill aims to make the American Samoa economic development tax credit a permanent feature of the U.S. tax code. Currently, this tax credit is set to expire, and the bill seeks to amend existing legislation to ensure that businesses operating in American Samoa can continue to benefit from these tax incentives without a set expiration date.

Key Points of the Bill

• Permanent Tax Credit: The bill proposes to change the existing law so that the tax credit for economic development in American Samoa is no longer temporary and instead is permanent.
• Modification of Conditions: The bill modifies specific sections of the Tax Relief and Health Care Act of 2006, removing previous terms that limited the duration and applicability of the credit.
• Effective Date: The changes would take effect for taxable years starting after December 31, 2021.

Background on the Tax Credit

The American Samoa economic development tax credit was introduced to stimulate economic growth in the region by providing tax incentives to businesses. This initiative aims to attract investment and support job creation in American Samoa, which has unique economic challenges compared to other parts of the United States.

Implications of the Bill

By making this tax credit permanent, the bill is designed to provide ongoing support for businesses in American Samoa, potentially leading to more sustained economic development and stability in the region. Businesses operating there may rely on these tax savings to reinvest in their operations, expand their workforce, or initiate new projects.

Relevant Companies

None found