Part 4 of 5 in the EB-5 Economic Impact Webinar Series
When people think about the EB-5 Immigrant Investor Program, they often focus on what it delivers in terms of job creation and project financing. But one of the most underappreciated aspects of EB-5 is what it contributes directly back to the government—and to communities across the country.
In Part 4 of our series on IIUSA’s Economic Impact Study, we explore how EB-5 generates billions in tax revenue and the broader financial impact of the investors themselves, many of whom go on to become long-term contributors to the U.S. economy.
A Program That Pays for Itself—and Then Some
One of the most important findings from the study: EB-5 is a net positive for the U.S. Treasury. According to Fourth Economy’s analysis, EB-5 activity from 2016 to 2019 generated:
- $14.5 billion in total tax revenue
- Including federal, state, and local tax contributions
- $122 billion in wages paid to U.S. workers
- $184 billion in GDP contribution
And unlike many other development incentives, EB-5 costs taxpayers nothing.
As Ed Smith of JTC explained during the IIUSA webinar:
“This is not money circulating within the U.S.—it’s money coming into the U.S. that stimulates investment, creates jobs, and generates real tax revenue. And it’s entirely self-funded by the investors.”
No Subsidies, No Tax Breaks—Just Results
The EB-5 program stands in contrast to traditional economic development tools like New Markets Tax Credits (NMTC) or Opportunity Zones, which often involve tax expenditures or foregone revenue.
Dr. Jerry Paytas of Fourth Economy summarized the difference this way:
“With programs like NMTC, you’re giving up future revenue in exchange for development. With EB-5, you’re gaining new revenue. Every dollar of tax generated is a net new benefit to the federal, state, and local governments.”
The Investors Themselves: An Overlooked Economic Force
The IIUSA study focused primarily on project-level impact—but during the webinar, panelists emphasized another often-ignored source of EB-5 economic benefit: the immigrant investors and their families.
“These are highly accomplished, entrepreneurial individuals,” said Christine Chen, COO of CanAm Enterprises. “They come here to live, work, invest, and raise families. They’re buying homes, paying tuition, starting businesses, and contributing to the local economy in ways that go far beyond their initial EB-5 investment.”
Key contributions of EB-5 investors include:
- Real estate taxes from home purchases
- College tuition and education-related spending
- Small business creation and additional job generation
- Sales and income taxes as long-term residents
- Cross-border trade and investment ties with their countries of origin
“You’re not just attracting capital,” Chen added. “You’re attracting people who bring ideas, global connections, and ambition. That’s a long-term asset for the U.S. economy.”
From Global Investors to Local Citizens
EB-5 investors aren’t just funding projects—they’re becoming part of the communities they invest in. Many pursue permanent residency and U.S. citizenship, enrolling their children in school, opening businesses, and laying down roots in the cities and towns they help develop.
This “human capital” impact is harder to quantify, but no less real.
“They’re joining Chambers of Commerce, starting new ventures, building global bridges,” said Chen. “Their impact is felt in every corner of the country.”
Turning Data into Policy
These insights aren’t just interesting—they’re actionable. Policymakers need to understand that EB-5 isn’t just about immigration or development. It’s about revenue generation, entrepreneurship, and global talent acquisition.
As Lee Li of IIUSA reminded the audience:
“This is data we can take to Capitol Hill. It’s evidence that EB-5 delivers real, measurable returns—not just in infrastructure and jobs, but in tax revenue and human capital.”
Read the full economic impact study
Download the one-page summary
Coming up next in Part 5: A bold vision for EB-5’s future—and the legislative and policy actions needed to unlock its full potential.
