Guam § 58104 - Eligibility Defined.

§ 58104. Eligibility Defined.

A Qualifying Certificate shall only be issued to the following entities: Any trust, partnership, sole

proprietorship, Limited Liability Partnership (LLP), Limited Liability Company (LLC), or corporation

formed under the laws of Guam, or possessions corporation as defined in § 58106 of this Chapter, engaged,

or about to engage in any of the following activities, and in the following order of priority:

(a) The establishment of industries and activities that support current initiatives associated with

the preservation and protection of Guam’s natural resources, also known as green technology. Such

industries and activities shall include, but not be limited to, energy efficiency, renewable energy and

environmental cleanup. For the purposes of this Section, “renewable energy” is energy which comes

from natural resources such as sunlight, wind, rain, tides, and geothermal heat, and other forms of

electrical power generation which are renewable (naturally replenished);

(b) The manufacture, distribution and sale of non-petroleum based fuels that include, but are not

limited to, biofuels such as biodiesel and ethanol and hydrogen fuels.

(c) agriculture;

(d) aquaculture;

(e) mariculture;

(f) manufacturing, or a processing trade company, or a distribution, transformation, or fulfillment

center.

For the purposes of this Chapter:

(1) “processing trade company” means a company that imports all or part of the raw and

auxiliary materials, parts and components, accessories, and packaging materials from abroad, and

exports the finished product(s), or sells the products locally, after processing, transforming, or

assembling such product(s) on Guam. At least fifty percent (50%) of the finished product shall

be assembled on Guam to qualify for the incentives of this Chapter; and

(2) “distribution, transformation, or fulfillment center” means a warehouse or specialized

building stocked with products to be redistributed to consumers locally or off-island and

processed to order completion. The distribution, transformation, or fulfillment center may provide

other services, such as product mixing, cross docking, and packaging.

Finished products must qualify for the Guam Product Seal pursuant to Public Law 18-042. Should

there be any additional costs for GEDA in evaluating this requirement, the Qualifying Certificate

holder shall bear such costs.

(g) commercial fishing;

(h) services;

(i) tourism;

(j) improvement of real property for purposes which are specifically determined by the Authority

to be beneficial, desirable, and necessary for the economic development of Guam;

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(k) insurance issuance, either by commercial insurers, reinsurers, or captive insurers which meet

the requirements of Title 22, GCA, Chapter 15, Article 3;

(l) export trading company, as defined in Title 11, GCA, § 26101 (d), if the main office of the

export trading company is established on Guam;

(m) producing water or disposing of wastewater, or both, jointly with the Guam Waterworks

Authority;

(n) operating on a military base on Guam a Base Operating Service Contract;

(o) a small business entity operating on a military base on Guam, a Base Operating Service

contract, or as a subcontractor to a BOS Contractor; and

(p) a global internet infrastructure services company(ies) providing internet connectivity and co-

location facilities, and its/their tenant-sellers in the sales of goods, services and information over the

internet; provided that:

(1) the seller is legally established in and operates from Guam;

(2) the sale does not include the local sale of goods, services and information;

(3) the sale is conducted exclusively through the internet; and

(4) the seller does not sell or distribute in any fashion material that is harmful to minors, as

that term is defined in the Internet Tax Freedom Act, a part of the Omnibus Appropriations Act

of 1998, Public Law Number 105-277. For the purposes of this Subsection, a “minor” is a person

under the age of eighteen (18) years.

(q) a business with at least Five Million Dollars ($5,000,000) of unrepatriated profits earned by

at least one (1) foreign subsidiary of such business.

(1) Such business’ only benefit for a Qualifying Certificate issued under this Subsection shall

be a rebate of income tax, as provided in § 58128.1 of this Article, which shall apply solely to

profits repatriated or deemed repatriated from any foreign subsidiaries of such beneficiary.

(2) A business covered under this Subsection shall not be eligible for benefits under §§

58127, 58127.1, 58127.2, 58127.3, 58127.4, 58127.5, or 58127.6 of this Article, unless such

business is qualified for, applies for, and is granted a separate Qualifying Certificate under a

different Subsection of this Section.

(A) Third (3rd)-party agents licensed to do business on Guam are hereby authorized to

facilitate transactions with the government of Guam on behalf of or as representatives of

repatriating entities, subject to legal authorization thereto, relative to any repatriation

pursuant to this Subsection for total fees not to exceed one percent (1%) of any amounts

repatriated with such fees paid by the repatriating entity, net of applicable taxes.

(B) Any entity handling primary financial transactions relative to any repatriation

pursuant to this Subsection shall be licensed to do business on Guam.

(C) A one percent (1%) surcharge shall be further assessed on repatriated amounts net

of applicable taxes, for remittance to the state or territorial treasury of corporate domicile of

the repatriating entity, or such state or territorial corporate domicile held prior to any

repatriation under this Subsection if such corporate domicile was established on Guam for

the purposes of this Subsection.

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(r) circular economy commercial activities that promote environmental sustainability, recycling,

and remanufacturing and refurbishment of recyclable materials, and that achieve the goal of reducing

the creation of waste or facilitating the continual use and reuse of resources on Guam. This shall

include activities of duly licensed and permitted recycling companies, as well as companies engaged

in the transshipment of recyclable materials to a recycling center outside of Guam that comply with

all applicable requirements contained in this Article.

(s) commercial drone industry.

For the purposes of this Subsection:

(1) “Commercial drones” are defined as unmanned aerial vehicles (UAV) or unmanned

aircraft systems (UAS), which can be flown, remotely-controlled, or fly autonomously through

software-controlled flight plans in their embedded systems, working in conjunction with onboard

sensors and GPS.

(2) The commercial drone industry shall encompass the research, development, training,

education, manufacturing, wholesale, retail, or the utilization in logistics of commercial drones

conducted on Guam.

(3) To avail of a Qualifying Certificate under this Chapter, the beneficiary shall be legally

licensed to conduct business on Guam, and any benefits awarded by the Guam Economic

Development Authority (GEDA) shall only be utilized on direct business activities associated

with the use of commercial drones.

(4) The beneficiary shall conform with all local and federal laws and regulations associated

with the use of commercial drones, and failure to conform may result in the revoking of any

benefits awarded under this Chapter.