,i #aaith ,,congress #ast ,session ,h4 ,r4 #dehf ,,in ,,the ,,house ,,of ,,representatives ,july #bb1 #bjbe,mrs4 ,cherfilus-,mc,cormick 7for herself and ,mr4 ,jackson of ,illinois7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,foreign ,affairs1 and ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a comprehensive strategy to support ,african and ,caribbean diaspora engagement in development through reduced remittance costs1 investment incentives1 and institutional partnerships4 #a4 ,short title ,this ,act may be cited as the ,african ,diaspora ,investment and ,development ,act or the ,,aida4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,united ,states is home to approximately #f1fjj1jjj first generation ,african and ,caribbean immigrants1 nested within a broader population of #df1jjj1jjj ,african ,americans1 representing vast economic1 intellectual1 and cultural capital1 with longstanding economic and cultural ties to their countries of origin4 7#b7 ,many members of these and other diaspora and immigrant populations annually transmit to their countries of origin or descent portions of their incomes or other earnings--transfers known as remittances--that in the aggregate often are large and significantly contribute to economic growth1 development1 and human welfare in recipient countries4 7#c7 ,remittances to ,africa were estimated at over #ia1jjj1jjj1jjj in #bjbc--transfers which sustain families1 fund education and healthcare1 finance small businesses1 and fill gaps in national infrastructure4 7#d7 ,an estimated #ai1dii1jjj1jjj was remitted to the ,caribbean in #bjbc1 with those countries receiving billions in essential family and community support4 7#e7 ,sub-,saharan ,africa remains the most expensive region for sending remittances1 with average costs of #g4gc percent to send #bjj in ,q#a #bjbd4 ,in contrast1 the average cost for ,latin ,america and the ,caribbean is #e4ig percent4 7#f7 ,if the global average cost of remittances is reduced to the ,sustainable ,development ,goal target of #c percent1 developing countries could save between #e1jjj1jjj1jjj and #cb1jjj1jjj1jjj annually and redirect such resources to international economic growth and development investment4 7#g7 ,the global remittance market was valued at #ghd1bej1jjj1jjj in #bjbb and is projected to reach #a1ccj1jjj1jjj1jjj by #bjcb1 creating significant employment and economic activity across the financial services industry4 7#h7 ,as the ,economist noted on ,april #bd1 #bjbe1 ,emigration from ,africa will change the world--not as a threat1 but as a mutual opportunity for global growth1 shared prosperity1 and demographic balance4 7#i7 ,yet the ,united ,states lacks a coherent framework to channel this economic power into formal investment1 leaving diaspora members to operate in fragmented1 uncoordinated environments with limited access to incentives or protections4 7#aj7 ,the future of ,united ,states-,africa relations does not rest solely on diplomatic summits or state-to-state aid4 ,it lies in the millions of quiet financial acts made every month by diaspora citizens3 a tuition payment1 a clinic donation1 a loan to launch a cousin's shop4 ,these flows deserve the full support of ,united ,states law and policy4 7#aa7 ,by embracing the diaspora not only as emotional kin but as strategic co-investors1 this ,act positions the ,united ,states at the frontier of global economic cooperation4 ,it affirms that ,america's strength abroad rests not only in its institutions--but in the networks of commitment and capital held by its people4 #c4 ,statement of policy ,it is the policy of the ,united ,states to-- 7#a7 recognize ,african and ,caribbean diaspora communities as legitimate partners in ,united ,states foreign economic policy1 development assistance1 and national investment strategy2 7#b7 recognize the role of regional and country-specific diasporas in cultural diplomacy1 people-to-people ties1 and various diasporas' expanding contribution to socioeconomic development2 7#c7 endeavor to reduce the cost of sending remittances including through policies aimed at increasing competition within the international financial transfers sub-sector and reducing related taxes or other administrative costs and maximize their potential to foster inclusive economic growth2 7#d7 safeguard the integrity and affordability of remittance flows1 including by prohibiting taxation on personal remittances2 7#e7 promote financial inclusion and reduce transaction costs through market competition1 fintech innovation1 and diaspora-owned remittance platforms2 7#f7 incentivize formal1 productive investment in diaspora countries of origin through targeted ,united ,states tax policy1 finance instruments1 and legal safeguards2 and 7#g7 pursue the global ,sustainable ,development ,goal of reducing the average cost of remittances to #c percent1 especially for low-value transfers and high-cost corridors1 through market incentives1 innovation1 and competition rather than price controls4 #d4 ,support for diaspora investments from the ,united ,states ,international ,development ,finance ,corporation 7a7 ,in general ,the ,chief ,executive ,officer of the ,united ,states ,international ,development ,finance ,corporation shall carry out a program to support1 in the form of matching up to #e1jjj 7adjusted for inflation7 in funds per taxpayer1 investments that the ,chief ,executive ,officer1 in coordination with the ,secretary of the ,treasury1 determines are investments by the ,african diaspora or investments in ,caribbean countries that meet measurable development goals in health1 education1 agriculture1 clean energy1 or youth employment in ,africa or the ,caribbean countries1 respectively4 7b7 ,investments by the ,african ,diaspora in certain issuers ,the ,securities and ,exchange ,commission shall issue rules to treat a member of the ,african ,diaspora who is not an accredited investor as an accredited investor for purposes of the securities laws with respect to securities offered or sold by an issuer1 if-- 7#a7 the ,united ,states ,international ,development ,finance ,corporation or another qualified development finance institution holds an investment in the issuer1 as determined by the ,commission2 7#b7 no more than #be percent of the total funds raised by the issuer in the applicable offering of securities is purchase by members of the ,african ,diaspora in reliance on this subsection2 and 7#c7 the issuer discloses to the public the amount of securities1 in the aggregate1 purchased by members of the ,african ,diaspora in reliance on this subsection4 7c7 ,special window for diaspora-,led investment ,in addition to the program described in subsection 7a71 the ,chief ,executive ,officer of the ,united ,states ,international ,development ,finance ,corporation shall1 using applicable authorities provided by the ,,build ,act of #bjah 7#bb ,u4,s4,c4 #ifja et seq471 establish a special window to provide support to diaspora-led investment funds1 social enterprises1 and infrastructure projects in ,african and ,caribbean countries4 #e4 ,diaspora infrastructure bond framework ,the ,secretary of the ,treasury and the ,united ,states ,international ,development ,finance ,corporation are authorized to provide support for the issuance of diaspora bonds by ,african and ,caribbean nations through credit enhancement1 technical assistance1 and co-marketing with diaspora investment vehicles4 #f4 ,market expansion for remittance providers 7a7 ,removing regulatory barriers ,the ,secretary of the ,treasury shall issue rules to remove undue regulatory barriers applicable to remittance providers that-- 7#a7 are owned by members of the ,african ,diaspora2 and 7#b7 are fintech-driven4 7b7 ,remittance ,innovation ,fund 7#a7 ,establishment ,there is established in the ,treasury a fund to be known as the ,remittance ,innovation ,fund4 7#b7 ,use of ,fund ,the ,secretary of the ,treasury shall use amounts in the ,remittance ,innovation ,fund to promote low-cost1 secure1 and traceable financial transfers by-- 7,a7 providing technical support to remittance providers described in subsection 7a72 and 7,b7 providing seed funding to persons seeking to establish a remittance provider described in subsection 7a74 #g4 ,deduction for remittances used for qualified purposes 7a7 ,in general ,part ,,vii of subchapter ,b of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #bbc the following new section3 #bbc;,a4 ,deduction for remittances used for qualified purposes 7a7 ,deduction allowed ,in the case of an individual there shall be allowed as a deduction an amount equal to so much of the qualified remittance transfers made by the taxpayer to recipients residing in a covered country during the taxable year as do not exceed #c1jjj4 7b7 ,qualified remittance transfer ,for purposes of this section1 the term qualified remittance transfer means a remittance transfer which is used by the recipient for housing1 agriculture1 education1 healthcare1 or small enterprise support4 7c7 ,covered country ,for purposes of this section1 the term covered country means a member state of the ,african ,union or a member state of the ,caribbean ,community 7,,caricom74 7d7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,clerical amendment ,the table of sections for part ,,vii of subchapter ,b of chapter #a of subtitle ,a of such ,code is amended by inserting the following new item after the item relating to section #bbc3 ,sec4 #bbc;,a4 ,deduction for remittances used for qualified purposes4 4 7c7 ,effective date ,the amendments made by this section shall apply to remittances made after the date of the enactment of this ,act4 #h4 ,exclusion of income attributable to certified diaspora investments 7a7 ,in general ,chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,,aa ,certified diaspora investments ,sec4 #adjj;,,aa4 ,certified diaspora investments4 #adjj;,,aa4 ,certified diaspora investments 7a7 ,in general ,in the case of a certified diaspora investment-- 7#a7 gross income for the taxable year shall not include any dividend or interest payments received with respect to such investment1 and 7#b7 the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged4 7b7 ,limitation ,the sum of the amount of payments taken into account under paragraph 7#a7 of subsection 7a7 and the amount of the increase in basis of assets of the taxpayer under paragraph 7#b7 of such subsection for any taxable year may not exceed #ab1jjj4 7c7 ,qualified diaspora investment ,for purposes of this section the term qualified diaspora investment means any equity1 debt1 or blended capital investment in a company or project based in a covered country 7as defined in section #bbc;,a7 and duly registered with such country's securities authority or channeled through a fund recognized by a ,united ,states development finance institution4 7d7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning after #bjbe1 the #ab1jjj amount in subsection 7b7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjbd for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7#b7 ,rounding ,if any increase under paragraph 7#a7 is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 7e7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,clerical amendment ,the table of subchapters for chapter #a of subtitle ,a of such ,code is amended by inserting after the item relating to subchapter ,z the following new item3 ,subchapter ,,aa4 ,certified diaspora investments4 4 7c7 ,effective date ,the amendments made by this section shall apply to investments made after the date of the enactment of this ,act4 #i4 ,repeal of remittance excise tax 7a7 ,in general ,chapter #cf of the ,internal ,revenue ,code of #aihf is amended by repealing subchapter ,c 7and the table of subchapters for such chapter is amended by striking the item relating to such subchapter74 7b7 ,effective date ,the amendments made by this section shall apply to transfers made after ,december #ca1 #bjbe4 #aj4 ,report 7a7 ,annual report required ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of the ,treasury1 acting through the ,director of the ,consumer ,financial ,protection ,bureau1 the ,board of ,governors of the ,federal ,reserve1 and the ,secretary of ,state1 in consultation with the stakeholders described in subsection 7b71 shall submit to the relevant congressional committees a report that addresses-- 7#a7 progress toward and a strategy for encouraging remittance and reducing transaction costs2 7#b7 remittance cost trends and barriers2 7#c7 impact of ,united ,states tax policy on diaspora investments2 7#d7 institutional collaboration with ,african governments1 governments of ,caribbean countries1 and diaspora-led ventures2 7#e7 uptake and effectiveness of financial instruments created under this ,act2 7#f7 challenges and obstacles associated with achieving the aforementioned goals2 and 7#g7 recommendations relating to programmatic or appropriations measures that could potentially enhance the implementation of the strategy1 including legislative or executive policy changes for such enhanced implementation4 7b7 ,consultations ,in developing the report required by this section1 the ,secretary of the ,treasury and the ,secretary of ,state shall1 as appropriate and practicable1 consult with-- 7#a7 stakeholders in the ,united ,states and in ,africa and ,caribbean from the private sector1 civil society1 and ,african diaspora2 7#b7 relevant agencies2 7#c7 ,state1 local1 and ,tribal governments2 and 7#d7 other relevant ,united ,states development agencies and entities4 7c7 ,final report ,not later than #aj years after the date of the submission of the initial report required by subsection 7a71 the ,president shall submit to the appropriate congressional committees a report that assesses progress over the preceding decade of the strategy4 ,such report shall also include the following3 7#a7 ,an assessment of the progress made in the implementation of the strategy over the preceding decade with respect to each of the goals described in subsection 7a74 7#b7 ,an assessment of the successes1 challenges1 and effectiveness of the strategy and its implementation4 7#c7 ,recommended legislative or executive policy changes relevant to addressing any gaps1 policy or program shortcomings1 or other outstanding challenges relating to the goals of the strategy1 along with descriptions of prospective follow-up activities necessary to address such challenges4 7#d7 ,recommendations relating to programmatic or appropriations measures that could potentially enhance the implementation of the strategy1 including legislative or executive policy changes for such enhanced implementation4 #aa4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs1 the ,committee on ,ways and ,means1 and the ,committee on ,financial ,services of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations1 the ,committee on ,finance1 and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,africa ,the term ,africa means the #ed countries recognized by the ,african ,union4 7#c7 ,african diaspora ,the term ,african ,diaspora means individuals of ,african or ,caribbean descent residing outside their countries of origin1 including first-generation immigrants and descendants4 7#d7 ,caribbean countries ,the term ,caribbean countries means the #ae countries of the ,caribbean ,community 7,,caricom74 7#e7 ,remittances ,the term remittances means personal transfers made across borders for family support or micro-investment1 and does not include corporate or institutional capital flows4