(a) There is established in the Virgin Islands Building Contractors Incentive Program to encourage local employment, to encourage investors to build more hotel rooms on the island of St. Croix, and to stimulate the Virgin Islands economy.
(b) A building contractor, subcontractor, hotel developer, supplier, or vendor providing construction services, building materials, supplies or related services to companies and developers that have invested in major hotel developments are eligible to participate in the Building Contractors Incentive Program. To qualify and remain eligible for benefits under this section:
(1) An applicant shall complete and submit to the Director an application for participation in the Program and provide the information requested by the Director.
(2) An applicant must be in compliance with all tax, licensing and other applicable laws of the Virgin Islands. The applicant shall provide certification from the Internal Revenue Bureau and Department of Finance that the applicant has filed and paid all taxes, penalties and interest and from the Office of the Lieutenant Governor that the applicant has filed its required annual report or has satisfactorily made agreement to pay the taxes or file the required reports.
(3) An applicant must, in the case of a natural person, be a bona fide resident of the Virgin Islands with his principal place of business in the Virgin Islands and a citizen or legal resident of the United States; in the case of a partnership, limited liability company, trust or similar entity, be a partnership, limited liability company, trust or similar entity within the meaning of that term under the laws of the Virgin Islands with its principal place of business in the Virgin Islands; in the case of a corporation, be either incorporated under the laws of the Virgin Islands with its principal place of business in the Virgin Islands or under the laws of the United States, a state, territory, or commonwealth thereof, or a foreign country, and be duly registered to conduct business in the Virgin Islands.
(4) An applicant must agree in writing to comply with all the applicable requirements of this subchapter, and agree in writing, as applicable to the applicant's business, to employ or contract, and to require all contractors retained by him to employ or subcontract, for services and to purchase goods, materials and supplies with and from those persons, firms and corporations who are residents of the Virgin Islands, or incorporated under the laws of the Virgin Islands, and who are duly licensed to do business in the Virgin Islands and have been so duly licensed for one year or more prior to the initial date of any such employment, contract, subcontract, or purchase, agree, where applicable to provide training in the applicant's trade, and agree to comply with any regulations promulgated under this section and conditions imposed in the certificate of tax exemption.
(c) Notwithstanding any other provision of this subchapter to the contrary, in order to carry out the purposes of the Building Contractors Incentive Program, every approved building contractor, subcontractor, hotel developer, supplier and vendor providing construction services, supplies, equipment and related services to companies and developers that are developing hotels in the Territory are entitled to an exemption from payment of the following taxes:
(1) all gross receipts taxes related to receipts, cash or accrued, derived from or directly connected with the development of hotels;
(2) all excise taxes on building materials, articles, supplies, goods, merchandise, tools manufactured or brought into the Virgin Islands on or to be used or employed exclusively in the production of hotel units under the section; and
(3) all customs duties in excess of a 1% handling charge on all materials, goods, tools, equipment, articles and commodities imported into the Virgin Islands to be used exclusively for the development of hotels.
(d) In addition to the exemptions provided in subsection (a), every building contractor, subcontractor, hotel developer, supplier and vendor qualifying under this section, shall have all corporate and individual income tax liability reduced to zero for a period equal to the period in which the beneficiary under this section provides services or supplies to a hotel development, or such other period as the Commission by regulation may determine.
(e) Any person entitled to the tax benefits conferred under this section shall apply to the Director under this subchapter for an appropriate certificate of tax exemption. Certificates must be approved or disapproved by the Commission and the Governor in accordance with rules and regulations promulgated by the Commission.
(f) Subject to the approval of the Governor, the Commission shall issue rules and regulations, consistent with this section as may be necessary and appropriate to implement the Building Contractors Incentive Program.