Pressure on to ease threat to EDC

V.I. Republican Party leaders were reported on their way to Washington to consult with Bush administration officials on changes to the Economic Development Commission program.  New residency and source-of-income restrictions included in federal legislation threaten the $100 million dollars in revenue the territory receives from EDC companies, according to the Virgin Islands Daily News.  The rules go into effect next year.  The CEO of Bridge Capital, and a former U.S. attorney, told the paper the administration wants to be assured EDC tax breaks are given only to true Virgin Islands businesses, and that it is not costing the federal treasury money.  David Nissman said one strategy would be for the local government to prepare a local statute incorporating those kind of rules for the program.

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