On Dec. 2, 2015, a revised discussion draft from both the Senate and the House of Representatives proposing to reform the EB-5 program and extending the program until Sept. 30, 2019, was redistributed amongst a limited group in the Senate and House. The key provisions of the discussion draft are outlined below that will serve to change and reform the program:
Job Creation Methodology: Allows for 90 percent indirect jobs, which means that 10percent of jobs must be direct. An employee of both the job-creating entity and the new commercial enterprise may be considered a direct job. The discussion draft includes a provision that the Bureau of Economic Analysis (BEA) must accept the job creation methodology. It also includes provisions for relocated jobs, publicly available bonds, and construction jobs that have not been included in the introduced bills. Notably, if enacted, it permits tenant occupancy under certain circumstances determined by an economically and statistically valid methodology. On the other hand, if enacted, there is a provision that explicitly prohibits alien investor capital for purchase of municipal bonds or other bonds. In addition, the length of any full-time construction jobs that last less than 24 months may be aggregated to satisfy the job creation requirement.
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