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.

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(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 18-42. 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

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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.

(r) circular economy commercial activities that promote environmental sustainability, recycling, and remanufacturing and refurbishment of recyclable materials, and that achieve

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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.

SOURCE: Subsection (i) amended by P.L. 23-109:2 (Jul. 26, 1996). Subsection (h) amended by P.L. 23-135 (Jan. 1, 1997). Amended by P.L.
24-103:2 (Oct. 24, 1997). Subsections (k-m) added by P.L. 24-295 (Oct.
21, 1998). Amended by P.L. 25-177:2 (Jan. 3, 2001), P.L. 29-150:2 (Jan.
30, 2009), P.L. 31-207:2 (May 9, 2012), effective 90 days from enactment pursuant to P.L. 31-207:3. Subsection (q) added by P.L. 34-103:2 (May
16, 2018). Subsection (f) amended by P.L. 35-119:2 (Dec. 11, 2020).

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Subsection (r) added by P.L. 35-116:2 (Dec. 11, 2020), effective (30) days following enactment pursuant to P.L. 35-116:5 (Dec. 11, 2020). Subsection (s) added by P.L. 35-118:2 (Dec. 11, 2020).

2021 NOTE: Subsection (s) added as (r) by P.L. 35-118:2 (Dec. 11, 2020), renumbered by the Compiler pursuant to 1 Guam Code Ann. § 1606.

2018 NOTE: Subitem designations added/altered in subsection (q)
pursuant to 1 Guam Code Ann. § 1606.

2015 NOTE: The subsection designations were altered from Arabic numbers to lowercase letters, and from lowercase Roman numerals to Arabic numbers, to adhere to the Compiler’s alpha-numeric scheme pursuant to 1 Guam Code Ann. § 1606.