Special Hotel Qualifying Certificate Program 

SPECIAL HOTEL QUALIFYING CERTIFICATE PROGRAM 

The Special Hotel Qualifying Certificate (SHQC) program was established in 2015 to provide qualified tax incentives for the development of one thousand six hundred (1,600) new hotel rooms.

In 2022, the program was broadened to encourage investment in the renovation and/or expansion of existing hotel properties. GEDA will be accepting applications under the SHQC program until December 31, 2031, at which time the program will sunset.

PROGRAM OVERVIEW

• Tax benefits are calculated as a percentage of eligible construction costs:
  • New Construction Tax Benefit: 10% of construction costs
  • Renovation/Expansion Tax Benefit: 20% of construction cost
• Construction costs are defined as “Expenses incurred by a developer for the construction of any new hotel or for the expansion of any existing hotel in Guam. Such costs include land acquisition; building and site improvements; furniture, fixtures & equipment; and architecture & engineering expenses.
• Tax benefits may be used against the following Guam taxes:
  • An abatement of 50% of Unpledged Business Privilege Tax payable to the government of Guam for twenty (20) years.
  • A rebate of 75% Income Taxes for twenty (20) years.
  • An abatement of 100% Real Property Taxes for ten (10) years on property utilized by the beneficiary for activities stated in the QC.
  • An exemption of 100% of Use Taxes with respect to the property used to construct, furnish and equip the new facility construction or substantial expansion of an existing building. Exemption expires one year after hotel property obtains an occupancy permit.
• All SHQCs have compliance, community contribution and other requirements.