Guam § 58305 - Special Qualifying Certificate; Defined.

§ 58305. Special Qualifying Certificate; Defined.

Notwithstanding any other provision of law, rule, or regulation to the contrary, the Special Qualifying

Certificate (QC) of the Åkton GUMA (Group Use Manåmko Accommodations) Incentive Act is a contract

valid for a given period that is executed by I Maga’hågan/Maga’låhen Guåhan upon the recommendation

of the Authority. This QC shall be limited to the construction of new elderly residential living housing

accommodations and/or the substantial renovation of existing multiple-family dwellings where its use shall

be for elderly residential living housing accommodations, as defined in this Article. The QC, once issued

and unless suspended, rescinded, or revoked, shall constitute conclusive evidence of entitlement to the tax

rebates, abatements, or exemptions set forth on its face.

(a) New Construction and Substantial Renovation/Improvement for Elderly Residential Living

Accommodations Tax Rebate and Abatement. There shall be allowed to each developer for elderly

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residential living projects that exceed the affordable income threshold as shall be determined by the

Authority, a tax rebate, exemption, and abatement in an amount equal to twenty-five percent (25%) of

their total construction cost.

(b) New Construction and Substantial Renovation/Improvement for Affordable Elderly

Residential Living Accommodations Tax Rebate and Abatement. There shall be allowed to each

developer for the new construction or substantial renovation/improvement of affordable elderly

residential living projects a tax rebate, exemption, and abatement in an amount equal to thirty percent

(30%) of their total construction cost.

A tax rebate, exemption, and abatement as provided in Subsections (a) or (b), supra, can be applied by

the developer at their discretion to the following taxes:

(1) up to one hundred percent (100%) Business Privilege Tax (BPT) abatement for twenty

(20) years as long as the tax credits are available at the point they are taken. This BPT abatement

shall not apply to the levy of three percentage points (3%), out of the total percentage points levied

from time to time, of the BPT, the revenues from which are pledged to the Government of Guam

Business Privilege Tax Bonds;

(2) up to seventy-five percent (75%) Income Tax Rebate for twenty (20) years;

(3) up to one hundred percent (100%) Real Property Tax Abatement for twenty (20) years;

provided, that the fee simple owner taxpayer is the Qualifying Certificate beneficiary and that the

real property is identified in their Qualifying Certificate; and

(4) up to one hundred percent (100%) of Use Tax Exemption with respect to the property

used to construct, furnish, and equip the new multiple-family dwelling. The exemption shall be

claimed no later than one (1) year from the issuance of the facility’s occupancy permit.

(c) Application Period. Eligible developers with new residential living developments applying

for this special QC pursuant to Subsections (a) and (b), supra, shall file their application prior to

issuance of the construction project building permit. Eligible developers with substantial

renovation/improvement residential living projects applying for this special QC pursuant to

Subsections (a) and (b), supra, shall be able to apply at any time, granted that for the purposes of

calculating their tax benefit amount as provided in Subsections (a) and (b), supra, any construction

costs invoiced prior to the official application submission date shall be deemed ineligible.

(d) Benefit Negotiations. The Authority has the sole authority to negotiate the terms of the QC.

Negotiations shall be completed prior to the issuance of the housing project or multiple-family

dwelling’s building permit, if applicable.

(e) Any new construction or substantial renovation project as provided in this Article where the

federal government offers tax credits, rebates, abatements, or exemptions shall remain eligible for this

Special Qualifying Certificate.

(f) This Article shall be in compliance with the Arts in Public Buildings and Facilities pursuant

to 1 GCA § 852.