31 Jul 2006

US House Representatives gives American Samoa's canneries two years of tax credits

10:38 am on 31 July 2006

The US House of Representatives has passed a bill which includes a two year extension of tax credits for American Samoa's canneries.

The legislation still has to be approved by the Senate.

Originally only a one year extension was approved by the US House, but Congressman Faleomavaega Eni Hunkin managed to get support for a two year extension included in a larger bill dealing with minimum wages.

The congressman made changes to the tax credit bill after discussions with the two canneries in American Samoa, Star Kist Samoa and Chicken of the Sea.

He said the canneries had insisted earlier that the extension of tax credits known as section 936 was the only option for them or they would leave American Samoa.

The House passed a one year extension to the tax credits but Senate support was not forthcoming because the tax credits had been abused in Mexico.