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Governor working on federal tax incentives for American Samoa
Governor Togiola Tulafono recently began sending out federal tax incentive proposals to Congressional members, in an effort to provide benefits not only for the local canneries, but also current and new businesses looking to operate in the territory.
Togiola said during his weekend radio program that there are currently no federal tax credit incentives for American Samoa because Section 936 and 30A federal tax credits have both expired, and the incentives were only for the canneries.
According to the Governor, the tax credit incentive proposal would benefit all types of businesses, and the American Samoa Government needs incentives in place when inviting businesses and/or investors to the territory.
Togiola said that tax credits will be given to businesses that renew their local operations, offer good salaries to its workers, and look to employ a workforce instead of replacing people with machines. He said the territory does not need those kinds of companies but instead, businesses that can provide continued employment.
The Governor submitted during his recent appearance before the US Senate Energy and Natural Resources Committee two proposals aimed at providing incentives for job creation and economic activity for American Samoa.
The first proposal is an alternative to Congressman Faleomavaega’s measure now pending in Congress, which seeks to extend federal tax credit for the two canneries operating in the territory.
Togiola’s proposal would extend eligibility to all domestic corporations, not just the two canneries. The Governor is rallying for the passage of the proposal, saying that the loss of trade incentives for our economic development places greater reliance on alternative programs.
The second proposal is the American Samoa Territorial Employment Program Incentive which takes the form of a non-refundable tax credit that can be used to reduce the income taxes a person may owe to the American Samoa Government.
The purpose of the incentive is to “create or retain permanent, full time jobs in the territory, as well as to promote significant capital investment in the facilities and equipment which those workers will use.”
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