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Congress asked to act on federal “ASEDC” tax credit

Gov. Lemanu P.S. Mauga

Pago Pago, AMERICAN SAMOA — In his written testimony last week to the U.S Committee on Energy and Natural Resources hearing on the state of U.S territories, Gov. Lemanu P.S Mauga explained that one of the biggest issues facing the territory is the federal American Samoa Economic Development Credit (ASEDC).

The tax credit was designed to encourage investment in the U.S. insular areas and create jobs by reducing the federal taxes on income earned by qualifying U.S. corporations, he said.

During the last Congress, the governor said, there were a number of tax provisions that did not get completed by the end of last year, and one of those was the ASEDC.

“This tax credit is crucial to the employment and economy of American Samoa,” he said. “We respectfully ask that this tax provision be acted upon, as soon as possible, and made permanent so that yearly extensions are no longer necessary.”