[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1424 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1424

 To extend the possession tax credit with respect to American Samoa an 
                          additional 10 years.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2003

 Mr. Faleomavaega introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To extend the possession tax credit with respect to American Samoa an 
                          additional 10 years.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Samoa Possession Tax Credit 
Act of 2003''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States territory of American Samoa lies 
        2,300 miles southwest of Hawaii, covers a land area of 76 
        square miles, has a population of less than 70,000, and a per 
        capita income of $4,300 per year.
            (2) Due to scarcity of land, labor and capital, economic 
        growth and development in American Samoa has been limited.
            (3) In fact, more than 80 percent of American Samoa's 
        economy is dependent either directly or indirectly on two 
        United States tuna canneries which employ more than 5,150 
        people or 74 percent of the workforce.
            (4) A decrease in production or departure of one or both of 
        the two canneries in American Samoa could devastate the local 
        economy resulting in massive layoffs and insurmountable 
        financial difficulties.
            (5) Although wage rates are $0.60 and less per hour in 
        other tuna catching nations and $3.60 per hour in American 
        Samoa, the possession tax credit offered by section 936 of the 
        Internal Revenue Code of 1986 has encouraged both canneries to 
        remain and invest in the Territory.
            (6) Such credit is scheduled to expire in January 2005 and 
        this may likely lead to the departure of one or both canneries.
            (7) To protect American Samoa's present economy and to 
        encourage and foster other investment and development in the 
        Territory, it is necessary to make permanent or extend the 
        possession tax credit with respect to American Samoa an 
        additional ten years.

SEC. 3. EXTENSION OF POSSESSION TAX CREDIT WITH RESPECT TO AMERICAN 
              SAMOA.

    Subparagraph (A) of section 936(j)(8) of the Internal Revenue Code 
of 1986 (relating to special rules for certain possessions) is amended 
by inserting before the period at the end the following: ``(January 1, 
2016, in the case of American Samoa)''.
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