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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXPANSION AND EXTENSION OF AMERICAN 
SAMOA ECONOMIC DEVELOPMENT CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 30D. AMERICAN SAMOA ECONOMIC DEVELOPMENT 
CREDIT. 
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a 
qualified domestic corporation, there shall be allowed as 
a credit against the tax imposed by this chapter an 
amount equal to the portion of the tax which is attrib-
utable to the taxable income, from sources without the 
United States, from— 
‘‘(1) the active conduct of a trade or business 
within American Samoa, or 
‘‘(2) the sale or exchange of substantially all of 
the assets used by the taxpayer in the active conduct 
of such trade or business. 
‘‘(b) LIMITATION.—The amount of the credit deter-
mined under subsection (a) for any taxable year shall not 
exceed the sum of the following amounts (determined by 
treating American Samoa as the only possession of the 
United States): 
‘‘(1) 60 percent of the sum of— 
‘‘(A) the aggregate amount of the qualified 
domestic 
corporation’s 
qualified 
possession 
wages for such taxable year, plus 
‘‘(B) the allocable employee fringe benefit 
expenses of the qualified domestic corporation 
for such taxable year. 
‘‘(2) The sum of— 
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‘‘(A) 15 percent of the depreciation allow-
ances for the taxable year with respect to short- 
life qualified tangible property, 
‘‘(B) 40 percent of the depreciation allow-
ances for the taxable year with respect to me-
dium-life qualified tangible property, and 
‘‘(C) 65 percent of the depreciation allow-
ances for the taxable year with respect to long- 
life qualified tangible property. 
‘‘(c) QUALIFIED
DOMESTIC
CORPORATION.—For 
purposes of this section, the term ‘qualified domestic cor-
poration’ means any domestic corporation which meets the 
conditions of both paragraphs (1) and (2) of section 
30A(b). 
‘‘(d) CREDIT NOT ALLOWED AGAINST CERTAIN 
TAXES.—The credit provided by subsection (a) shall not 
be allowed against any tax referred to in a paragraph of 
section 30A(c). 
‘‘(e) TREATMENT OF CERTAIN FOREIGN TAXES.— 
For purposes of this title, any tax of a foreign country 
or a possession of the United States which is paid or ac-
crued with respect to taxable income which is taken into 
account in computing the credit under subsection (a) shall 
not be treated as income, war profits, or excess profits 
taxes paid or accrued to a foreign country or possession 
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of the United States, and no deduction shall be allowed 
under this title with respect to any amounts so paid or 
accrued. 
‘‘(f) ADMINISTRATIVE PROVISIONS.—For purposes of 
this title— 
‘‘(1) the credit under this section shall be treat-
ed in the same manner as the credit under section 
936, and 
‘‘(2) a corporation to which this section applies 
shall be treated in the same manner as if it were a 
corporation electing the application of section 936. 
‘‘(g) DENIAL OF DOUBLE BENEFIT.—Any wages or 
other expenses taken into account in determining the cred-
it under this section may not be taken into account in de-
termining the credit under section 41. 
‘‘(h) APPLICATION OF SECTION.—This section shall 
apply to taxable years beginning after December 31, 2007, 
and before January 1, 2018.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 55(c) of such Code 
is amended by striking ‘‘and the Puerto Rico eco-
nomic activity credit under section 30A’’ and insert-
ing ‘‘the Puerto Rico economic activity credit under 
section 30A, and the American Samoa economic de-
velopment credit under section 30D’’. 
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(2) Subclause (I) of section 56(g)(4)(C)(ii) of 
such Code is amended by inserting ‘‘30D,’’ after 
‘‘30A,’’. 
(3) Subclause (VI) of section 56(g)(4)(C)(iii) of 
such Code is amended to read as follows: 
‘‘(VI) APPLICATION TO SECTIONS 
30A
AND
30D
CORPORATIONS.—Ref-
erences in this clause to section 936 
shall be treated as including ref-
erences to sections 30A and 30D.’’. 
(4) Subsection (b) of section 59 of such Code 
is amended by inserting ‘‘, 30D,’’ after ‘‘30A’’ each 
place it appears, including the heading. 
(5) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30D. American Samoa economic development credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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