H.R.399 - To permanently extend the American Samoa economic development tax credit. (119th Congress)
Summary
H.R. 399 aims to permanently extend the American Samoa economic development tax credit. This bill amends Section 119(d) of the Tax Relief and Health Care Act of 2006, removing the expiration date of the tax credit. The change applies to taxable years beginning after December 31, 2021.
Expected Effects
The permanent extension of the tax credit is intended to encourage continued economic development in American Samoa. This could lead to increased investment and job creation in the region. The removal of the expiration date provides businesses with long-term certainty, potentially attracting more sustainable investments.
Potential Benefits
- Encourages long-term investment in American Samoa.
- Potentially stimulates economic growth and job creation.
- Provides businesses with greater certainty for financial planning.
- May improve the overall economic stability of American Samoa.
- Could lead to increased tax revenue for the local government in the long run.
Most Benefited Areas:
Potential Disadvantages
- May increase the federal budget deficit due to continued tax credits.
- Could create dependency on tax incentives rather than organic growth.
- Potential for misuse or abuse of the tax credit.
- May not significantly impact economic development if other factors are not addressed.
- Could disproportionately benefit certain businesses over others.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the power of Congress to lay and collect taxes, duties, imposts, and excises, as stated in Article I, Section 8, Clause 1 of the Constitution. The uniformity clause might be relevant, but since American Samoa is a territory and not a state, the requirements may be different. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).