House Bill 16-172, sponsored by Rep. Joseph C. Reyes, R-Saipan, is expected to be discussed during today’s session.
In his bill, Reyes said new investments must be enticed to come to the islands to stimulate economic activities.
He said although the CNMI already has an Investment Incentive Act, there is a need to introduce a Economic Stimulus Investment Program under the Department of Commerce.
Under H.B. 16-172, qualified existing businesses can also avail of the abatement program while new ones should apply with Commerce for a nonrefundable fee of $10,000.
Their application must have a business plan outlining a minimum new investment of $5 million; copies of articles of incorporation, partnership agreement or trust agreement; and a Department of Labor certification that the 20 percent local hire requirement is met, among other things.
Commerce will be the lead agency to issue the Economic Stimulus Investment Certificate prospectively, from the date of issuance, abating taxes or establishing a higher tax rebate level up to 100 percent.
The Investment Incentive Act paves the way for the issuance of qualifying certificates that entitle qualified entities to tax breaks.
However, some lawmakers said the government has been so generous in implementing the QC program over the years despite its failure to bring in new investments.
