NMI taxpayers to get credit

Like other Americans, CNMI resident taxpayers will be receiving a little extra money from the federal government this year.

Under the American Recovery and Reinvestment Act, taxpayers in the Commonwealth will receive a tax credit of up to $400 for individuals and $800 for couples. The U.S. Congress passed the Act, commonly referred to as the stimulus package, last week. President Obama is expected to sign it on Tuesday while in Denver, Colorado.

The credit is refundable, meaning those who owe less tax than that amount will still receive the full amount, said CNMI Delegate Gregorio “Kilili” Sablan.

“Refundability means that if you owe $300 in taxes and are eligible for a $400 credit, you will not have to pay the $300 in taxes, plus you will get a check for the extra $100,” he said.

Instead of waiting to fill out the 2009 tax returns, taxpayers may adjust the money being withheld from their paychecks in order to begin receiving the benefit immediately, Sablan said.

Non-resident aliens, single taxpayers earning more than $75,000 or couples with combined earnings of more than $150,000 are not eligible for the tax credit.

A one-time cash payout of $250 is also available for adults receiving Social Security benefits, veteran’s compensation or pension benefits. People receiving Supplemental Security Income are also eligible. The payments are expected by mid-June.

The U.S. Treasury would pay the local government an amount equal to the cost of the credits for the Northern Marianas, Sablan said.

In addition to the tax credit and other grants like the Pell grant, the CNMI could receive as much as $96 million in new federal funds, as part of the $787 billion package.

Sablan, along with delegates from the other insular areas, had pushed for a package of $536 million for the territories to be distributed by the Department of the Interior. That effort was unsuccessful, so now the CNMI must compete with other areas for the money.

“If we don’t [compete for] this money, it’s going to be taken away and given to someone else,” he said. “So our government here must do everything it can to get its share.”

The CNMI delegate urged Gov. Benigno Fitial to bring in someone whose sole responsibility is to apply for and obtain all possible funding.

Governors across the nation are hiring people in order to get the maximum funding, he said, citing the state of Massachusetts as an example. Massachusetts Gov. Deval Patrick hired a real estate development president to oversee that state’s stimulus money.

Over the weekend, press secretary Charles P. Reyes Jr. said Fitial agrees that the money must be used quickly and appreciates Sablan’s support.

“The administration is committed to making full use of available federal funds for the CNMI’s maximum benefit,” Reyes said.

He added that Fitial instructed Executive Branch departments during the last Cabinet meeting to quickly comply with federal fund requirements.