Pago Pago, AMERICAN SAMOA — The long awaiting Administration bill that would amend local tax laws, allowing the ASG Treasury to distribute thousands of dollars under the federal Advance Child Tax Credit program using funds provided by the US Treasury Department pursuant to provisions of the American Rescue Plan Act (ARPA) of 2021 — was finally introduced this past Friday in both the Senate and House.

The Senate Budget and Appropriations Committee, chaired by Sen. Utu Sila Poasa is scheduled to hold a hearing this week, with the Tax Office Manager called as a government witness, while no information was available at press time on a House hearing.

Gov. Lemanu Peleti Palepoi Sialega Mauga first hinted about the submission of such a measures to the Fono during his address to lawmakers on July 12th.

Then local parents started getting very anxious when their relatives and friends residing in the U.S began getting checks for the Advance Child Tax Credit from the U.S Internal Revenue Service on July 15th, as Samoa News learned that the US Treasury had already transmitted the funds to ASG, which have also drawn up a draft distribution plan.

For residents of American Samoa and other US Territories, the IRS said: “You may be eligible for advance Child Tax Credit payments with your U.S. territory tax agency. Please contact your local territory tax agency for additional information about any advance payments and other changes to the Child Tax Credit.”

Under the American Rescue Plan, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17, according to the IRS (www.irs.gov].

Some Fono members are hoping that the local Tax Office and ASG Treasury officials will explain how ASG plans to distribute the checks, since it’s now two months since the first-batch was released in the U.S. with the second-one out on Aug. 13th.

The payment distribution for the U.S is every month through Dec. 15th this year, according to the IRS public schedule.

For the Lemanu Administration bill, it seeks to adopt the Child Tax Credit Improvements for 2021 provision of the American Rescue Plan Act of 2021 — “by American Samoa through the end of 2021 tax year.”

And if the ARPA provision — Section 9611, as well as that adopted into federal law, 26 USC 24 — “are extended through further tax years, they shall be in force in American Samoa for each tax year during which it is in effect.”

And if the federal provisions “are not extended beyond the 2021 tax year, the [advance] Child Tax Credit provisions adopted by American Samoa shall revert to the rules” already set in local laws — the income tax and income tax table rules as of Dec. 31, 2000.

According to the bill’s preamble, a provision of the ARPA provides that the US Treasury shall distribute funds for the Advance Child Tax Credit through ASG if American Samoa has a plan for the distribution of those funds.

Additionally, ASG Treasury/Revenue has developed a plan to distribute those funds, but due to the structure of the American Samoa tax code, an amendment to the code is required to enact this provision of the Advance Child Tax Credit for the territory.

And because the ARPA provision is applicable for a limited time period from July 15 through Dec. 31, 2021, “it is urgent that American Samoa adopt this amendment to the tax code immediately in order for citizens of the territory with children to receive these payments.”

The bill is effective immediately upon passage by the Legislature and approval of the governor.  The ARPA is “designed to respond to the COVID-19 pandemic and the funds need to be made available to the people of American Samoa as soon as possible,” according to language of the proposed law.