Application of Tax Credits

(a)Individuals, corporations, or limited liability companies making up-front contributions, as approved by the Director of Parks and Recreation and the GBF Board of Directors, towards the development, upgrading, repair and maintenance of the Paseo Stadium and ancillary facilities, consistent with a Stadium Master Plan, shall be authorized tax credits against Excise Taxes levied pursuant to Chapter 22 (Annual Excise and Admission Taxes), Article 3 of Chapter 26 (Alcoholic Beverage Tax), Article 4 of Chapter 26 (Liquid Fuel Tax), Article 6 of Chapter 26 (Tobacco COL1/11/2022 CH. 77 PARKS & RECREATION Tax), Chapter 28 (Use Tax Law), and Chapter 30 (Monthly Excise Tax on Occupancy of Hotel and Similar Lodging House Facilities), of Division 2 of Title 11, Guam Code Annotated, not to exceed the aggregate amount for all contributors collectively, of Five Hundred Thousand Dollars ($500,000.00) annually for the first two

(2)years following the enactment of this Law and One Hundred Thousand Dollars ($100,000.00) annually for five

(5)subsequent years. The Director of the Department of Revenue and Taxation shall determine the allocation of the aggregate annual tax credits between contributors. Any donation of merchandise authorized pursuant to this Section shall be the actual cost of the item plus the cost of transportation from the point of origin to its destination without profit, mark-up or taxes. All tax credits referred to in this Section shall mean tax credits applied against excise tax liabilities. The Guam Economic Development and Commerce Authority (‘GEDCA’) shall submit to I Liheslatura within thirty

(30)days upon the enactment of this Act, rules and regulations governing the implementation of tax credits portion of this Chapter.

(b)Tax credits which cannot be applied during a tax year may be applied during subsequent tax years.

(c)Tax credits shall not be applied to more than fifty percent (50%) of the contributor’s monthly excise tax liability.

(d)GEDCA shall certify that participants are in compliance with this Section, other provisions of law, the GBF Master Plan, the lease between GBF and the government of Guam, and with applicable provisions contained in tax credits previously granted to sports based activities, and shall provide a copy of this certification to the Department of Revenue and Taxation for the issuance of such tax credits.

(e)All expenditures hereunder shall be in accordance with the Guam Procurement Law.