[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1916 Introduced in House (IH)]







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 Representatives 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 subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``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 
attributable 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 determined 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--
                    ``(A) 15 percent of the depreciation allowances for 
                the taxable year with respect to short-life qualified 
                tangible property,
                    ``(B) 40 percent of the depreciation allowances for 
                the taxable year with respect to medium-life qualified 
                tangible property, and
                    ``(C) 65 percent of the depreciation allowances 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 corporation' 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 accrued 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 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 treated 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 credit under this section may not be 
taken into account in determining 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 economic activity credit 
        under section 30A'' and inserting ``the Puerto Rico economic 
        activity credit under section 30A, and the American Samoa 
        economic development credit under section 30D''.
            (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.--References in 
                                this clause to section 936 shall be 
                                treated as including references 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.
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