Pago Pago, AMERICAN SAMOA — The American Samoa Government (ASG) and the Department of Treasury have announced a new Earned Income Tax Credit (EITC) for qualified and eligible taxpayers in American Samoa this year.

Checks will be distributed to all qualified and eligible taxpayers in September of this year — once the Fono passes the new legislation.

According to a statement from the local Treasury Department, they will be introducing the legislation in the next Fono session in July of this year to ensure qualified taxpayers will receive payments from the new EITC.

As part of the American Rescue Plan Act of 2021 passed by Congress and signed into law by President Biden, American Samoa was allocated $16 million for its eligible taxpayers, provided that local legislation passes it — they have to adopt the EITC.

The EITC in American Samoa’s tax code was repealed in 1980, therefore new legislation is required in order for American Samoa taxpayers to receive the funds.

Upon passage by the Fono and signing into law by Governor Lemanu Peleti Mauga, the local Treasury Department plans to disburse and distribute to eligible and qualified taxpayers their EITC’s by September 2022.

According to the Treasury Department, the taxpayers that are qualified and eligible to participate in the EITC program are those who filed their 2021 Form 390 and 390EZ to report income.

“Further details and guidance on eligibility will be issued in the near future and we appreciate your patience on this very important refundable tax credit for the low and moderate-income workers,” the statement said.

In April of this year, Tax Office manager Toleafoa Vaai Poufa confirmed during a House hearing that American Samoa has already received funding for the new EITC, and new legislation must be passed by lawmakers before the distribution of EITC checks.

He assured lawmakers during the hearing that this is another blessing for our people from the United States and he believes our people will use their money wisely to support their family and children.