Tuesday, December 29, 2009

Bill seeks tax credit to revitalize schools

Bill seeks tax credit to revitalize schools

Tuesday, 29 December 2009 04:11
by Jude Lizama | Variety News Staff

FINANCIAL contributors who choose to take part in the maintenance, repair, upgrade, or construction of a local public school facility would benefit from proposed tax credits if a bill introduced by Sen. Eddie Calvo is passed into law.

Bill 302 notes that many public schools on island are in poor shape due to the lack of vital operations and maintenance.

The bill seeks to present the tax credit benefit as leverage to initiate needed upgrades to Guam Department of Education schools so that they may be “restored to a usable and safe condition in order to ensure that students are provided with a venue to hold their classes, athletic competitions among public and private schools, science fairs, school plays, and dances, among other curricular and extracurricular activities.”

The bill discusses the revenues that would be generated next year as a result of the military buildup, and notes that “that a portion of the projected growth in the government of Guam revenues from the buildup is set to begin in 2010 should be invested in the education of our children.”

Under the bill, individuals, sole proprietorship or partnerships would be authorized tax credits against gross receipts taxes in exchange for their contributions to the improvements of public school facilities.

The tax credit would be equivalent to 75 percent of “the actual cost of the contribution to the project plus the cost of transportation, if any, from the point of origin to its destination.” Unused credits may be carried on to subsequent tax periods.

The proposed processes would be developed by the Guam Economic Development Authority.

No comments: