How is EB-5 investment capital taxed when investors get it back?

I bring in an international accountant for things like this. I may know EB-5 laws and policies well but tax? I leave that to an expert.

Generally, if there are profits then you do have to pay taxes on the profits. The regional center will report them on your K-1.

If you are simply getting back your capital with no capital gains or losses, that is called the return of investment and is not subject to tax. If, on the other hand, your capital grows and you are paid back an amount more than your investment, you would be subject to capital gains tax. Finally, if you get back an amount less than your investment amount, that would mean that you have experienced a capital loss, which you could theoretically use against capital gains you might have elsewhere. The treatment of taxes when there is a capital gain or a capital loss is quite complicated. If that were to happen, you should certainly seek the advice of a tax attorney or accountant.

You pay U.S. tax only on your income from the investment, not on the investment amount.

No taxes. It is a return of your investment capital. If you get more back than you put in, then the difference is taxable, either as ordinary income or capital gains. A loss would probably be a long-term capital loss.

Best to discuss with a tax professional.