Washington, D.C. -- U.S. Senator Bob Menendez (D-N.J.) and Roger Wicker (R-Miss.) introduced the Territory Economic Development Tax Credit Act that would create a tax credit for wages and tangible investments made by businesses in the U.S. territories.
“This legislation will incentivize businesses to bring jobs and manufacturing back from foreign countries and into America’s borders,” Sen. Menendez said. “It directly ties the tax credit available to U.S. businesses to the jobs created and tangible investments made by the business in the U.S. territories. This will undo some of the harm created by the 2017 Tax Law and spur much-needed job creation and economic development for the more than 3.5 million American citizens who currently reside in the five U.S. territories. I am proud to introduce the Territory Economic Development Tax Credit Act and look forward to working with Senator Wicker to pass this bill into law.”
Territory Economic Development Tax Credit (TEDTC) Act would:
- Create a business tax credit for wages and tangible investments made by active U.S. parent corporations with branches operating in the territories; 80 percent of income must be sourced from a territory; 75 percent must come from an active trade or business in a territory.
- Credit would be equal to 40 percent of eligible wages and benefits paid or provided to employees in the territory, capped at the current Social Security contribution base; credit equal to 25 percent of eligible tangible investments made in the territory could be claimed.
A copy of the bill is available here.
