U.S. Virgin Islands Governor deJongh Praises U.S. Senate Approval of Tax Extenders Bill and Provision Benefiting U.S. Territories

Important Rum Cover-Over Economic Development Program Again Supported by Senate

Bill's Passage a Victory for Future of Territory's Economy

ST. THOMAS, U.S. Virgin Islands, March 11 /PRNewswire-USNewswire/ -- U.S. Virgin Islands Governor John P. deJongh, Jr., yesterday lauded the U.S. Senate's passage of the tax extenders bill as a clear commitment to the successful future of the territory. Passing with a vote of 66-32, HR-4213 included a continuation of the rum excise tax cover-over provision that generates revenue for the U.S. Virgin Islands based on local rum production. That revenue will be used to ensure the territory's future economic health and modernize its rum industry.

For more than 50 years, the rum cover-over program has supplied vital funds to the U.S. Virgin Islands. It rebates the excise taxes paid by rum producers on rum distilled in the territory back to the local government, so those funds can be used to generate business activity and economic growth. A majority of the cover-over program is permanent, while a small portion is renewed regularly by Congress.

"The rum cover-over program is vital to the U.S. Virgin Islands' long-term economic development strategy. It provides a revenue stream we can invest back into our economy and our residents," said Governor deJongh. "I thank Majority Leader Reid, Finance Committee Chairman Baucus, Energy and Natural Resources Chairman Bingaman, Senator Charles Grassley, and the rest of the Senate for ensuring that the cover-over program will continue to benefit the people of the Virgin Islands. Their support allows us to move ahead with plans to develop our economy, generate business activity in the territory and provide public services to our hardworking residents."

In addition to supporting investments under his economic development plan, Governor deJongh intends to use future cover-over revenue to build schools and roads, strengthen the underfunded government pension program and finance public works programs. The passage of yesterday's extenders bill, with no changes to the cover-over program, will help make these goals a reality. The cover-over program helps make up the disparity between the 50 states and the U.S. Virgin Islands, which receives less funding for federal programs.

"Because of the Senate's continued support, the cover-over program will continue to allow us to invest in our economic future. This revenue will put our rum industry, a top-three sector in the territory, on the forefront of environmental sustainability and industrial efficiency," said Governor deJongh. "This vote is a victory for the future of the U.S. Virgin Islands."

In addition to the passage of the tax extenders bill, the Senate also rejected an amendment from Florida Senator George LeMieux, which would have unfairly rewarded Puerto Rico with rum cover-over proceeds on rum produced in the U.S. Virgin Islands. The failed amendment would also have rendered the U.S. Virgin Islands incapable of meeting its bond obligations which are backed by the cover-over proceeds on rum production.

Governor deJongh went on to add, "We are very pleased that the amendment from Senator LeMieux failed, and while today is a victory for both the U.S. Virgin Islands and for fair economic development practices, we remain wary of the attempts by Puerto Rico and other special interest lobbyists to undermine the U.S. Virgin Islands and hurt our efforts to improve economic redevelopment in our territory."

SOURCE Office of U.S. Virgin Islands Governor John P. deJongh, Jr.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED