Press Releases

For Immediate Release                             Contact: Tionee Scotland
January 14, 2025                                                   202-808-6129

PRESS RELEASE

PLASKETT REINTRODUCES CRITICAL LEGISLATION TO ADVANCE ECONOMIC PROSPERITY FOR THE VIRGIN ISLANDS

Washington, DC – The 119^th session of Congress is well underway, and Congresswoman Plaskett is intensely focused on advancing equality and equity for the Virgin Islands across numerous spheres, but with a particular focus on economic advancement. “The introduction of these new bills is part of our legislative strategy toward improving the economy of the U.S. Virgin Islands,” said Congresswoman Plaskett. “These bills, along with others to come, will improve the Virgin Islands’ economic development authorities under the Internal Revenue Code.

“The reintroduction of these bills is one step in the legislative process. The bills do not become law until passed by the House, passed by the Senate, then signed by the President. The next step in this process will be full House consideration. I am hopeful the measures will be considered by the full House in short order, and my team and I will be working to have companion measures considered by the Senate. It is no secret that there will be significant challenges during this session of Congress, particularly as the Republican majority has stated that they will provide cuts in corporate taxes by cutting benefits in other areas and clamp down in areas they deem are related to immigration. My team is looking for ways to work in a bi-partisan manner.”

Below is a list of the bills reintroduced by the Congresswoman this week:

1. Territorial Economic Recovery Act - This bill would restore favorable tax treatment of investment in U.S. territories, including the Virgin Islands. It would treat such investment as domestic rather than foreign investment and require investors to have an active trade or business in a U.S. territory with a certain percentage of income derived from such territory. 
2. Territorial Tax Parity and Fairness Act - This bill would amend the Internal Revenue Code to apply the exemption that currently exists for U.S. territory residents from the law’s definition of a United States shareholder to include bona fide residents of the Virgin Islands, like the existing treatment for bona fide residents of Puerto Rico and other U.S. territories.  This will bring tax parity to investments in the Virgin Islands.
3. Territorial Tax Parity Act - This bill modifies the income source rules that apply with respect to the taxation of resident businesses in U.S. territories. This would make the Virgin Islands more attractive to businesses and investment and would create more jobs in the territory.
4. Territorial Tax Parity and Clarification Act - The bill would specifically create parity between the way capital gains income in the Virgin Islands is treated and the way that it is treated in Puerto Rico and other U.S. territories.
5. Territorial Tax Equity and Economic Growth Act - This bill modifies the residence and income source rules involving U.S. territories to provide for economic recovery in the territories.
6. Virgin Islands Visa Waiver Act - This bill authorizes a non-immigrant visitor visa waiver program for nationals of certain countries to enter the U.S. Virgin Islands for up to 45 days (as currently provided to other U.S. territories).  Under this visitor tourism program, the Department of Homeland Security (DHS) may provide a waiver admitting a non-immigrant visitor from a DHS-approved country into the Virgin Islands for up to 45 days.
7. Fuel Tax Cover Over Bill - This bill would amend the Internal Revenue Code to cover over (pay) to the Virgin Islands revenue from U.S. excise taxes on fuel produced in the Virgin Islands and transported to the United States mainland from the Virgin Islands, like the existing cover over program that exists for distilled spirits and other articles of manufacture.

Congresswoman Plaskett further shared, “All of these bills, if passed, will protect jobs and the livelihood of our small business owners and increase the amount of revenue generated in the Virgin Islands. The territorial tax bills I’ve introduced are critical and will address a long-standing issue—to compensate for historical disadvantages, and to create jobs and middle-class economies, the territories have historically relied on provisions in the U.S. tax code that treat U.S. investment in the territories more favorably than investment in foreign jurisdictions. However, recently, including through new taxes on global intangible low taxed income (GILTI) in the Tax Cuts and Jobs Act of 2017, U.S. territories have been treated the same as foreign countries.  This has had a negative impact on private investment and job creation in the Virgin Islands. To remedy this unintended result, since the 117th Congress, I have introduced legislation to place the Territories on par with other states — which is not intended to favor the issue of status in any of the U.S. territories. 

“Additionally, my visa waiver legislation will create a special waiver program for the Virgin Islands to open more opportunities for us to host more participants in regional sporting activities like the ‘Rolex Regatta,’ and the St. Croix International Triathlon, as well as opportunities to open our medical facilities to patients in the Caribbean region.

“Furthermore, in 2025, many of the temporary provisions enacted under President Trump’s 2017 Tax Cuts and Jobs Act (TCJA) will expire. As Democrats negotiate with Republicans, we will rely on our proven record of using the tax code to invest in workers, families, and pro-growth policies to place our economy on a sustainable path.

“I look forward to continue working with my Democratic colleagues to put people over politics, work to lower costs, create better paying jobs, and make our communities safer by working with whomever to support and advocate for everyday Americans.”

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