When Congress reconvenes next month, they will take up the question of a one-year extension for the local canneries after the U.S. Senate amended a U.S. House measure deleting the cannery's extension as well as other one-year extensions.

The canneries’ current tax credit 30A, which expires Dec. 31, 2007, requires the canneries to make their tax claims based on wage credits.

Last month the House passed the ‘Tax Increase Prevention Act of 2007’ (H.R. 3996), which included a one-year extension of 30A tax credits for American Samoa's canneries as well as one-year extensions for other federal tax programs.

Information the Samoa News received from Washington DC reveals that H.R. 3996 was amended by the Senate and it now only includes language extending the alternative minimum tax exemption for one year.

All other one-year extensions in the bill were deleted and H.R. 3996 was signed into law by President Bush on Dec. 26.

The extension for American Samoa will be taken up when Congress convenes after the holiday break and when a new bill passes with the extension, the tax credits will be retroactive, just like the last time and the canneries won’t loose a penny, said a staffer with Congressman Faleomavaega Eni’s Office.

Faleomavaega said last month that he had originally sought a ten-year extension of our tax credits, but all tax extenders previously included in H.R. 3996 received the same extension of one-year only.

He said Rep. Charles B. Rangel, chairman of the House Ways and Means Committee, has promised to continuing working with him on a more permanent solution for American Samoa once the local canneries agree on what incentive works best for them.

The congressman said earlier this year, both canneries agreed that 30A was the way forward, but by mid-year, the canneries were at odds.

Faleomavaega said the canneries have also been unable to provide Rangel with a clear indication of whether or not they will stay in American Samoa if they are provided with tax credits.