EB-5 Extension Bill
Status of EB-5 Extension Bill â€“ from EB5 Investment Coalition conference call yesterday:
Provisions negotiated by EB5IC over the past three days with 4 Congressional offices (majority and minority leaders of Senate and House) and expected to be in the final bill submitted for inclusion in and approval of the Omnibus Legislation set for vote on Friday, December 11:
- 5-year extension â€“ to 9/30/20.
- Two investment amounts - $800K for TEA and other categories, $1M for non.
- TEA calculation â€“ California method (12 contiguous census tracts, no spooling, stretching out permitted); water-based and zero population tracts permissible.
- Visa set-asides â€“ 4K for upper category, 4K for lower category, remaining 2K unassigned.
- Non-counting of derivative green cards â€“ rejected.
- Grandfathering â€“ if investor has filed 526 prior to date of enactment (12/11), $500K amount is total needed. If project has one 526 approval OR exemplar approval, 90-day tiered step up to new investment minimum (additional $100K needed for every 30 days ($600K thru 1/10), 60 days ($700K thru 2/9), and 90 days ($800K starting on 3/10)). No other grandfathering based on 9/30 idea â€“ also no backdating of effectiveness (including new amounts) to 6/1 either. Therefore, there admittedly will very likely be bifurcated investors (investing on different minimums) for many currently open projects.
- â€œPayforâ€ fee added just for the heckuvit: $10K fee assessed for every visa (primary AND derivatives) due upon 526 filing, non-refundable in event of denial. Paid to 9/11 First Respondersâ€™ Health Care Fund. Just because Congress can require itâ€¦.
- Labor law poison pill â€“ still remains but gutted.
We have been told the securities law revisions as to deleting JCEs and softening the â€œensuring complianceâ€ requirement that we proposed at the end of last week have been accepted and are being included; to be confirmed when revised bill available for final review.
IIUSA is onboard with whatever EB5IC negotiates with Congressional leadership.
Further updates as available.
If you have any questions please feel free to contact Homeier & Law, P.C.