Congressman Faleomavaega announced today that the House and Senate may begin to conference their versions of the Tax Reconciliation Act of 2005 next week and continue their consultations when Congress returns in late January.
“In anticipation of the debate, I have written to Members of the Senate Finance Committee urging their support of the House provision which includes a one-year extension of 936 tax credits for our canneries and a promise to provide for a long-term federal tax policy for American Samoa for purposes of encouraging economic growth and development,” Faleomavaega said.
“If the House and Senate agree, then the tax credits extended to our canneries will become retroactive. In other words, our canneries will not lose any of their benefits if, in fact, Congress makes it decision after December 31, 2005. Given the importance of this legislation to our economy and people, I will continue to keep the public updated and informed as this matter continues to make its way through Congress.”
“Pending this legislation, I am encouraged in that American Samoa will now have an opportunity to establish a long-term tax and economic policy at the federal level which I will make sure includes input from our canneries, boat owners, local businesses, Fono, and other vested stakeholders. I also remain hopeful that ASG will parallel our federal efforts by implementing comprehensive tax reform policy at the local level since this is critically important for the overall economic development of our Territory,” Faleomavaega concluded.