AIDA

This proposal aims to help people in the African and Caribbean diaspora support development back home. It pushes for lower money transfer (remittance) costs, encourages investment, and builds partnerships with institutions to make this support easier and more effective.

A key change is a new tax break for individuals who send money to people living in African Union or CARICOM countries. If the money is used for housing, farming, education, health care, or small business support, you could subtract up to $3,000 of those transfers from your taxable income each year. The Treasury Department would set the detailed rules for how this works.

• Who is affected: People in the U.S. sending money to recipients in African Union or CARICOM countries, and those recipients who use the funds for approved purposes.
• What changes: A yearly tax deduction of up to $3,000 for qualifying remittances used for housing, agriculture, education, health care, or small enterprises; rules to be issued by the Treasury.
• When: Timing depends on the rules the Treasury issues.