A new economic impact study commissioned by the Association to Invest in the USA (IIUSA) has found that the U.S. EB-5 immigrant investor visa program contributed nearly $3.4 billion to U.S. GDP and supported over 42,000 U.S. jobs during fiscal year 2012. This is more than double the average annual impact result reported in 2011.
“As the industry trade association for the EB-5 Regional Center Program, IIUSA is committed to accurately measuring the positive impacts of the EB-5 Program in terms of job creation, GDP growth, and tax revenue,” said IIUSA Executive Director Peter Joseph in a recent release. “The results of the 2012 assessment unequivocally demonstrate that the EB-5 Program is delivering on its promise of regional economic development and U.S. job creation at no cost to the taxpayer,” he added.
Key findings of the report include:
- Total economic impact: $3.39 billion to U.S. GDP.
- Total jobs supported: over 42,000.
- Over 85 percent of EB-5 investment capital – $1.55 billion – was invested in the construction sector. Other sectors seeing EB-5 investments include chemical manufacturing, mining, manufacturing and power generation.
- Pennsylvania, New York, California and Illinois top the list of states with the largest level of EB-5 investment.
- Household spending by immigrant investors and their families contributed approximately $383 million to US GDP and supported more than 4,700 jobs in 2012.
In light of the EB-5 program’s massive continued growth (with no end in sight), this year’s expected retrogression of Chinese EB-5 visas by the state department, and the recent shut-down of Canada’s immigrant investor program, industry insiders expect competition for one of the 10,000 EB-5 allocated green cards to be hotter than ever. The study, which was conducted by David Kay of IMPLAN Group, LLC and peer-reviewed by Professors Eric Thompson and Hart Hodges of Association for University Business Economic Research (AUBER), was commissioned by the Association to Invest in the USA (IIUSA), the national trade association representing EB-5 Regional Centers that account for 95 percent of the capital flowing through the EB-5 program.
The EB-5 visa is attractive for high net-worth-investors because it does not require having a close relative or a U.S. company willing to sponsor the immigrant, as required by conventional immigrant visas. Under the EB-5 program the investor is issued a conditional Green Card providing Permanent Residency for themselves, their spouse and children (under the age of 21) on an investment of at least $500,000. The investment must result in the development of at least 10 permanent jobs.
The key features of EB-5 are easily stated, but the EB-5 process can be difficult and confusing. The entire process is a vast combination of timelines, deadlines, tax returns, supporting documentation, substantiation of investment funds, and due diligence. At Guzhva Law Firm, we are providing uniquely integrated legal services. We can help you with your immigration and tax questions pertaining to your EB-5 visa. To schedule your initial consultation, please contact us to schedule your free initial consultation at email@example.com