Fagatogo, AMERICAN SAMOA — The American Samoa Government announces the passage of House Bill 39-12, a new law that strengthens and modernizes the Earned Income Tax Credit (EITC) to provide greater financial support to working individuals and families across the Territory. This legislation aligns American Samoa's tax code with federal provisions under the American Rescue Plan Act (ARPA), ensuring eligible residents can benefit from enhanced refundable tax credits.

Protecting Government Finances

The law ensures that EITC payments are tied to available federal funding. If federal support is reduced or discontinued:

•   The government is not obligated to cover the shortfall with local funds.

•   Options remain for federal assistance or legislative appropriations if needed. This approach balances direct financial relief for residents while safeguarding the Territory's General Fund and long-term fiscal stability.

This legislation delivers relief to working families while maintaining responsible fiscal management. It ensures American Samoa benefits from federal support without placing undue burden on local resources.

Effective Immediately

Due to its impact on current tax filings, the law takes effect immediately. The Department of Treasury will release updated tax tables and guidance to assist taxpayers during the filing season.