9 Nov 2017

US tax reform to benefit American Samoa business

6:35 pm on 9 November 2017

The planned tax reform in the US provides for an extension of the American Samoa Economic Development Credit.

US money

US cash Photo: 123rf

The territory's Congresswoman Aumua Amata Radewagen pressed the chair of the Ways and Means committee to include a section, extending the credit for six years.

The credit would also be extended retroactively to last 1 January.

This would reduce federal taxes on income earned by qualifying US firms in American Samoa, such as those in the tuna industry.

The Economic Development Credit was designed to encourage investment in the territory and create jobs.

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.

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