I 

110TH CONGRESS 

1ST SESSION H. R. 1916 

To amend the Internal Revenue Code of 1986 to expand, and extend for 

10 years, the American Samoa economic development credit. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 18, 2007 

Mr. FALEOMAVAEGA introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to expand, 

and extend for 10 years, the American Samoa economic 

development credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. EXPANSION AND EXTENSION OF AMERICAN 

4 SAMOA ECONOMIC DEVELOPMENT CREDIT. 

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following new 

8 section: 


hsrobinson on PROD1PC76 with BILLS
2 

•HR 1916 IH

1 ‘‘SEC. 30D. AMERICAN SAMOA ECONOMIC DEVELOPMENT 

2 CREDIT. 

3 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a 

4 qualified domestic corporation, there shall be allowed as 

5 a credit against the tax imposed by this chapter an 

6 amount equal to the portion of the tax which is attrib7 utable to the taxable income, from sources without the 

8 United States, from— 

9 ‘‘(1) the active conduct of a trade or business 

10 within American Samoa, or 

11 ‘‘(2) the sale or exchange of substantially all of 

12 the assets used by the taxpayer in the active conduct 

13 of such trade or business. 

14 ‘‘(b) LIMITATION.—The amount of the credit deter15 mined under subsection (a) for any taxable year shall not 

16 exceed the sum of the following amounts (determined by 

17 treating American Samoa as the only possession of the 

18 United States): 

19 ‘‘(1) 60 percent of the sum of— 

20 ‘‘(A) the aggregate amount of the qualified 

21 domestic corporation’s qualified possession 

22 wages for such taxable year, plus 

23 ‘‘(B) the allocable employee fringe benefit 

24 expenses of the qualified domestic corporation 

25 for such taxable year. 

26 ‘‘(2) The sum of— 


hsrobinson on PROD1PC76 with BILLS
3 

•HR 1916 IH

1 ‘‘(A) 15 percent of the depreciation allow2 ances for the taxable year with respect to short3 life qualified tangible property, 

4 ‘‘(B) 40 percent of the depreciation allow5 ances for the taxable year with respect to me6 dium-life qualified tangible property, and 

7 ‘‘(C) 65 percent of the depreciation allow8 ances for the taxable year with respect to long9 life qualified tangible property. 

10 ‘‘(c) QUALIFIED DOMESTIC CORPORATION.—For 

11 purposes of this section, the term ‘qualified domestic cor12 poration’ means any domestic corporation which meets the 

13 conditions of both paragraphs (1) and (2) of section 

14 30A(b). 

15 ‘‘(d) CREDIT NOT ALLOWED AGAINST CERTAIN

16 TAXES.—The credit provided by subsection (a) shall not 

17 be allowed against any tax referred to in a paragraph of 

18 section 30A(c). 

19 ‘‘(e) TREATMENT OF CERTAIN FOREIGN TAXES.— 

20 For purposes of this title, any tax of a foreign country 

21 or a possession of the United States which is paid or ac22 crued with respect to taxable income which is taken into 

23 account in computing the credit under subsection (a) shall 

24 not be treated as income, war profits, or excess profits 

25 taxes paid or accrued to a foreign country or possession 


hsrobinson on PROD1PC76 with BILLS
4 

•HR 1916 IH

1 of the United States, and no deduction shall be allowed 

2 under this title with respect to any amounts so paid or 

3 accrued. 

4 ‘‘(f) ADMINISTRATIVE PROVISIONS.—For purposes of 

5 this title— 

6 ‘‘(1) the credit under this section shall be treat7 ed in the same manner as the credit under section 

8 936, and 

9 ‘‘(2) a corporation to which this section applies 

10 shall be treated in the same manner as if it were a 

11 corporation electing the application of section 936. 

12 ‘‘(g) DENIAL OF DOUBLE BENEFIT.—Any wages or 

13 other expenses taken into account in determining the cred14 it under this section may not be taken into account in de15 termining the credit under section 41. 

16 ‘‘(h) APPLICATION OF SECTION.—This section shall 

17 apply to taxable years beginning after December 31, 2007, 

18 and before January 1, 2018.’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) Paragraph (1) of section 55(c) of such Code 

21 is amended by striking ‘‘and the Puerto Rico eco22 nomic activity credit under section 30A’’ and insert23 ing ‘‘the Puerto Rico economic activity credit under 

24 section 30A, and the American Samoa economic de25 velopment credit under section 30D’’. 


hsrobinson on PROD1PC76 with BILLS
5 

•HR 1916 IH

1 (2) Subclause (I) of section 56(g)(4)(C)(ii) of 

2 such Code is amended by inserting ‘‘30D,’’ after 

3 ‘‘30A,’’. 

4 (3) Subclause (VI) of section 56(g)(4)(C)(iii) of 

5 such Code is amended to read as follows: 

6 ‘‘(VI) APPLICATION TO SECTIONS

7 30A AND 30D CORPORATIONS.—Ref8 erences in this clause to section 936 

9 shall be treated as including ref10 erences to sections 30A and 30D.’’. 

11 (4) Subsection (b) of section 59 of such Code 

12 is amended by inserting ‘‘, 30D,’’ after ‘‘30A’’ each 

13 place it appears, including the heading. 

14 (5) The table of sections for subpart B of part 

15 IV of subchapter A of chapter 1 of such Code is 

16 amended by adding at the end the following new 

17 item: 

‘‘Sec. 30D. American Samoa economic development credit.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2007. 

Æ 


hsrobinson on PROD1PC76 with BILLS