You are hereEB-5-related issues for Project Companies, EB-5 clients, Regional Centers and wanna-be Regional Centers

EB-5-related issues for Project Companies, EB-5 clients, Regional Centers and wanna-be Regional Centers


For an overview of the EB-5 law and Program, go to: www.eb-5center.com/overview, which should be read before getting into more detailed information or issues.

Here, various EB-5 issues as they develop will be examined in detail. Most people do not realize that new EB-5 issues crop up constantly, mainly because the EB-5 law is still a developing field and the statutes and regulations do not cover specific issues; and we believe some of the important issues that will come up will be of first impression even to USCIS.

We attempted to divide and group the articles that are relevant into the following categories:

1) "Existing/Potential EB-5 Clients";
2) "Existing/Wanna-Be Regional Centers"; and
3) "Everyone Interested in EB-5 Program" as a catch-all category and relevant to anyone interested in the EB-5 Program.

By far, third group contains most number of articles.

This "EB-5 Issues" section differs from the "Easy as EB-5" section in that the "Easy as EB-5" section only covers key concepts of "EB-5 law" to provide an easy-to-understand conceptual overview of EB-5 law requirements to laymen users, whereas this "EB-5 Issues" section covers certain issues and information that have wider implications in greater details.

Can someone please clarify this argument for me:
I remember reading somewhere that the tax treatment for "all worldwide income" by the United States was overturned, if and only if, the foreign investor made his/her investment in to a qualified Regional Center. They would, as Green card holders, pay U.S. taxes on the regional center investment, but not on their other world wide income.

I have never heard of such ruling. I don't believe it was ever overturned, and the rule remains.

I believe it was part of the changes made in the 21st Century Appropriations Act of 2002(when changes such as the reinstatement of limited partnerships were made and TEA's for $500,000 started) in order to stimulate activity. We all know the the Pilot Program wasn't a great success . . . I may have read this in the IRC Tax Code...I'll have to re-check it. Maybe it was discussed and never passed?

I am pretty sure this was never passed. The reason I say this is because if it was passed, many EB-5 practitioners would have heard about it. Please check again and let us know. I do agree with you that much could and should be done by US govt to attract very wealthy business persons. Many of the EB-5 requirements do not reflect the real-world needs or are all that practical. I think the U.S. govt wants to attract wealthy investors through the EB-5 RC Programs but at the same time, they don't want to give them any incentives except the existing avenue of making them go through CPR and then I-829 processing.

I personally think the US EB-5 system should be more like the Canadian Investor Immigrant Program with around 5 jobs-creation requirement per each Investor. Creating 10 jobs is too difficult to achieve.