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Tax breaks proposed for Guam hospital construction; bill sets December 2025 deadline for project commencement

Updated: May 16



By Pacific Island Times News Staff


In a bid to break the impasse over the location of Guam’s new hospital, Sen. Jesses Lujan has introduced a bill offering tax incentives to private developers willing to hop on the project.


The bipartisan bill also seeks to target Dec. 31, 2025 as the deadline for the project's commencement.


Bill 305-37 would authorize the Guam Economic Development Authority to issue qualifying certificates, offering tax incentives to private entities willing to undertake the construction and development of the new hospital or medical complex.

Jesse Lujan

These certificates may include up to 100 percent rebate on income tax liability and use tax for a period of up to 30 years, ensuring substantial financial support for the project, according to the bill filed on the heels of divisive debates over site selection.


"Through tax benefit incentives provided by the qualifying certificate program, this legislation invites any private individual, entity, or organization to take on the enormous task of developing and constructing the hospital wherever they deem appropriate," Lujan said.


"This process takes into consideration many factors, including market demand, feasibility, preferences, and more, which will all ultimately reflect the collective will of the people," he added.


Gov. Lou Leon Guerrero maintains that the proposed new hospital be built in Barrigada, but senators and the medical sector push for Ypao Point in Tamuning.

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"The bill, to be known as the 'Espitåt Para Todu (Hospital for All) Act of 2024,' seeks to address the critical need for a modern hospital or medical facility, breaking the deadlock that has stymied progress," Lujan said.


"Now is the time for action. We needed to find another way to approach the dire situation. With Bill 305, I believe we can finally move forward. I hope the administration agrees," he added.


The bill is co-sponsored by Vice Speaker Tina Rose Muña Barnes, Sens. Frank Blas, Jr., Roy A.B. Quinata, Dwayne T.D. San Nicolas, Thomas J. Fisher, Joe S. San Agustin and William A. Parkinson.

 

"The bipartisan backing of Bill 05-37 is a testament to the commitment of the 37th Guam Legislature to provide better healthcare for the people of Guam. Now is not the time for arguments," Lujan said.

 

The “Espitåt Para Todu Act of 2024” would mandate the development and financing plan for the new hospital be determined within six months of its passage, with construction set to commence no later than Dec. 31, 2025.

 

“We need a new hospital now. The deadline of Dec. 31, 2025 underscores the imperative and gives the people of Guam a timeframe they can anticipate," Lujan voiced.

 

In addition to the current locations identified in Tamuning and Barrigada, the bill also negotiates for the sale or lease of other government properties also determined as suitable locations, providing flexibility in site selection while ensuring fair market value transactions.

 

"Let’s break the deadlock, find a clear path forward together, and uphold our commitment to the health and well-being of Guam’s residents,” Lujan said.



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