By Emmanuel T. Erediano
[email protected]
Variety News Staff
GOVERNOR David M. Apatang last week approved House Bill 24-24, which gives businesses a tax credit for donating cash contributions to non-profit legal services organizations to help low-income residents who cannot afford to hire attorneys.
Authored by House Floor Leader Marissa Flores, H.B. 24-24 is now Public Law 24-28. It establishes the Legal Services and Access to Justice Tax Credit, a mechanism similar to the education tax credit that allows businesses to donate cash to schools in lieu of a portion of their tax obligations to the government.
P.L. 24-28, however, applies specifically to qualifying non-profit legal services organizations in the CNMI. This tax credit incentivizes individuals and businesses to direct a portion of their wage and salary earnings and gross revenue tax to non-profit legal organizations. The tax credit for a qualifying entity is capped at $200,000 per tax year.
The new law requires qualifying non-profit legal services organizations to spend the funds solely to provide free or low-cost legal assistance to low-income or underserved individuals in the CNMI. Recipient organizations must certify compliance in a form and manner prescribed by the Division of Revenue and Taxation.
According to P.L. 24-28, Micronesian Legal Services Corporation, a non-profit organization that provides free legal assistance in the CNMI, covers a wide range of civil matters, including family law, housing, consumer protection, employment rights, immigration, public benefits, and victims’ rights.
All its services are provided at no cost to individuals with incomes at or below 125% of the Federal Poverty Guidelines. This eligibility encompasses approximately 38% of the CNMI population, or about 19,500 individuals.
The law notes that despite the clear public need for legal services, MLSC’s capacity is severely limited. It operates with only three attorneys and three paralegals, making it impossible to fully meet the needs of the eligible population.
Although MLSC receives some federal funding and has occasionally been awarded supplemental funds through local appropriations, these resources remain insufficient. As a result, the gap between the demand for free civil legal services and MLSC’s capacity continues to leave many residents without meaningful access to justice.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
