In a letter dated Oct. 17, 2011 to Speaker Eliceo D. Cabrera, R-Saipan, and Rep. Froilan C. Tenorio, Covenant-Saipan, Saipan Chamber of Commerce president Doug Brennan said the chamber does not support House Bill 17-168 which will repeal the Investment Incentive Act, and House Bill 17-216 which will suspend the Investment Incentive Act.
Brennan said they assume those granted tax relief under the Investment Incentive Act would be unaffected by the bills.
“If the Legislature does propose withdrawing allowable tax reduction to those already granted tax investment incentive, the chamber strongly warns against that proposed action,” he added.
He reiterated the chamber’s position that the Investment Incentive Act and its Qualifying Certificate Program should apply to those firms considering investment in the CNMI, not firms already situated and doing business here.
Brennan said the chamber is against proposals affecting investors that would apply for tax relief under the existing Investment Incentive Act in the future.
He said as the Legislature intended, the Investment Incentive Act would create jobs by providing incentives to invest in the commonwealth.
“There was never intended any tax loss from the payroll of those jobs created through investment incentive, nor any decrease in spending in the commonwealth as a result of new businesses establishing in the CNMI,” Brennan said.
House Bills 17-168 and 17-216 will make it less likely for new investments to occur in the CNMI, he added.
“The chamber further trusts conventional wisdom with respect to the creation of jobs by inviting investment as a means to diversify the private sector and an economy overall,” he said.
The focus should be on job creation, he added, not squeezing more from businesses that exist as a result of the investment incentive provided in the past.
“Discontinuing investment incentive decreases potential investment and job creation,” Brennan said.
