To permanently extend the American Samoa economic development tax credit.
Summary
HB399 would make permanent the American Samoa economic development tax credit by amending the Internal Revenue Code provisions that currently limit the credit to a fixed period. The bill removes the sunset language that restricts the credit to the first 16 years for one category and the first 10 years for another, and it applies the change retroactively to taxable years beginning after December 31, 2021.
In practical terms, the measure would allow eligible taxpayers and businesses connected to economic activity in American Samoa to continue claiming the credit without an expiration date. The bill is narrowly focused on a single territorial tax incentive and does not create a new credit or alter the structure of the existing program beyond making it permanent.
Impact
The bill would amend section 119(d) of division A of the Tax Relief and Health Care Act of 2006, specifically the provisions codified in the note to 26 U.S.C. 30A, by striking the time-limiting language tied to the American Samoa economic development tax credit. This would remove the current sunset and preserve the credit for future taxable years, affecting federal tax law and the taxpayers, employers, and businesses eligible to benefit from the incentive in American Samoa.
Sentiment
There is no recorded committee debate or vote history in the provided materials, so the bill’s sentiment cannot be measured from floor or committee discussion. Based on the bill’s introduction and referral, the measure appears to be a straightforward extension of an existing territorial economic development incentive, with no documented opposition or support statements in the available record.
Contention
No specific points of contention are identified in the provided transcript or voting history because none are available. In general, bills like this can raise questions about the cost of making a tax credit permanent, the effectiveness of the incentive in promoting economic development, and whether a permanent extension is preferable to periodic congressional review, but those issues are not documented in the materials provided.