EDC group has a plan

A trade group representing participants in the government’s Economic Development Commission has met with Department of the Interior officials in Washington to clarify rules for EDC beneficiaries. Since an official of the IRS warned companies they had to meet a residency requirement to qualify for generous tax benefits for EDC companies, some firms have considered closing. “That’s an important loss of revenue to the territory,” said Benjamin Rivera Jr., executive director of the USVI Economic Alliance. He told the St. John Source, attorneys for some EDC companies have recommended they halt operations for fear the currently-unstated residency requirements may eventually be a problem. Richards said EDC companies contribute as much as $75 million a year to the territory, in addition to donations to local charities of another $25 million. The Alliance official said, “We were very well received and believe that Interior heard our message. (We now) will state our case to the Treasury Department.”