A company with the mission of recycling used tires from Guam and transforming them into usable products was approved for a Qualifying Certificate by the Guam Economic Development Authority board, which met Thursday afternoon.
The significant items discussed include the Fiscal Year 2023 Budget, approval of a QC for Core Tire Recycling LLC, and the approval for renewal of separate certificates for Island Home Insurance Company, dba StayWell, and for TakeCare.
GEDA board Chair David John said the QCs address health care and the trash problem on the island, two significant issues. The certificates, created by local law, provide business incentives, including tax abatements, to support fledgling or critical industries.
The QC that was approved for Core Tire Recycling LLC was first authorized by lawmakers decades ago, according to John.
“This QC was created back in the ’90s for the movement of large amounts of metals off of Guam. We revamped this QC through legislation proffered by Sen. (Clynt) Ridgell, and now have this application in addition to two others who submitted letters of intent to increase the scale of our island’s waste mitigation efforts,” he said.
At the meeting, Core Tire Recycling noted that the average automotive tire waste is approximately 120,000 tires per year.
“At full operations, the company is expected to remove 74,000 tires from the waste stream, addressing about 60% of the tire waste problem of the island. The QC sets forth a minimum of 24,000 tires to be removed annually in order to maintain the benefits, which include abatements on (business privilege tax), income tax and use tax,” said Melanie Mendiola, GEDA administrator.
Representatives from Core Tire passed around samples of tiles which will be the end product of the tire waste.
Regarding the insurance renewals, John said, at one-time health insurance companies were given multiple layers of tax abatements and rebates to encourage the industry to start up.
“The industry is now mature,” he said.
John said the board acknowledged that the business privilege tax, or BPT, is a tax passed on to the consumer.
“If the applicant can demonstrate that they have passed on the savings from the abatement to the customer, they may be eligible for this QC renewal of BPT only.”
The GEDA board is awaiting confirmation of two additional directors in order for it to more easily meet quorum at its monthly meetings.
The board did not meet in September or October of 2022 due to an inability to meet a quorum.
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