The EB-5 regional center pilot program is set to expire this year. It was temporarily extended until Sept. 30, 2016, by U.S. Congress on December 11, 2015. Although many discussions, debates and congressional hearings have taken place regarding possible changes to the EB-5 program, including increases to the investment amounts, revised definition of Targeted Employment Area (TEA), and increased USCIS oversight, no changes were made.
Given that 2016 is a U.S. Presidential election year and we are less than four months away from the program sunset date of September 30, 2016, unless one was very optimistic, realistically no changes can be expected. However, recent actions and interest by the USCIS have increased the possibility of changes to the EB-5 regional center program prior to its expiration in September.
Anticipated Changes
Some of the changes that investors can expect from any congressional and/or regulatory revision to the EB-5 program include the following:
1. Increase in the amount of investment: Proposed legislative and regulatory changes increase the minimum amount from $500,000 to $800,000 in Targeted Employment Areas and increase minimum investment amount from $1 million to $1.2 million in non-Targeted Employment Areas.
2. Revision of TEA Definition: There may be a change in how a TEA is defined which may affect both investor and Regional Center interest in the program and fundraising structures of current and planned EB-5 projects.
3. Oversight: We can expect increased oversight by USCIS of EB-5 investors, regional centers, developers, immigration attorneys and securities broker-dealers involved in the EB-5 lifecycle.
Given that a possible increase from $500,000 to $800,000 represents a significant jump in the investment amount, now may be the best time to move forward with your EB-5 application. Of course EB5 BRICS is here to help with the entire process from EB-5 project selection to legal representation and assistance with RBI regulations in India and US tax and accounting advice and planning.
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DISCLAIMER
The information within this post represents my opinions only. This information does not reflect the opinions and/or policies of NMS Capital Advisors, its affiliates or any other firm I am contractually employed.