Guam Child Care Tax Incentives

Q: How does the 'Mirror Tax' system work in Guam?

Guam uses a 'Mirror Code' tax system where the Guam Tax Code mirrors the US Internal Revenue Code. This means Section 45F exists automatically in Guam law. Guam corporations file with the Guam Department of Revenue and Taxation (DRT)—not the IRS—and claim the credit against their local Guam income tax liability.

Q: Where do I file to claim the 45F credit in Guam?

Guam corporations file Form 1120-GU with the Guam Department of Revenue and Taxation (DRT). Attach Form 8882 to that Guam return. The credit check comes from GovGuam, not the US Treasury (unless you're a US branch with US tax liability).

Q: Can US companies with Guam operations claim 45F?

Yes. US-based companies with operations in Guam can claim 45F on their US Federal return (Form 1120 with Form 8882) for child care expenses related to their Guam workforce. The credit comes from the US Treasury in this case.

Current for 2026 Tax Year • Last Updated: January 24, 2026

Mirror Tax Code: File Form 8882 with Guam DRT to Claim 45F Locally

The Guam "Mirror Code" Advantage

🪞 How the Mirror Tax System Works

Guam uses a "Mirror Code" tax system where the Guam Tax Code mirrors the US Internal Revenue Code. This means Section 45F exists automatically in Guam law. When a Guam corporation files its taxes with the Department of Revenue and Taxation (DRT)—not the IRS—they can claim this credit against their local Guam income tax liability.

40-50% Section 45F Credit

Claim 40-50% of qualified child care expenses, up to $600,000 annually—against your Guam tax liability.

⚠️ Critical Filing Clarification

Guam corporations: File Form 8882 with your Guam Form 1120-GU to claim the credit against your local tax liability. The check comes from GovGuam, not the US Treasury.

US branches in Guam: If you have US Federal tax liability, you can also file with the IRS and receive the credit from the US Treasury.

✈️ Guam Success Story: United Airlines (Guam Hub)

Tourism is big, but United Airlines operates a massive hub at Antonio B. Won Pat International Airport.

The United Airlines Model: 24/7 Operations

The Problem: 24/7 flight operations require 24/7 staff—ground crew, flight attendants, gate agents
The Solution: United offers backup care and comprehensive benefits to support employees living on the island
The 45F Angle: They use the 45F Credit to offset the cost of "Backup Care" packages for shift workers in Tamuning and Dededo

🎯 The Lesson for Guam Employers

"United proves that you can bring mainland-style benefits to the island. Use the 45F Credit to offset the cost of 'Backup Care' packages for your shift workers. The credit works the same way here—just file with Guam DRT instead of the IRS."

Example: Guam Hotel Chain (Tourism Sector)

How a Tumon Bay resort can leverage 45F for their hospitality workforce.

Component	Amount	Notes
Annual Child Care Investment	$200,000	Backup care, stipends, contracted slots
Section 45F Credit (50%)	-$100,000	Claimed on Guam Form 1120-GU
Business Expense Deduction (~20%)	-$40,000	Reduces Guam taxable income
Your Net Cost	~$60,000	70% savings!

💡 Tourism Industry Tip

Hotels like PIC Guam, Hilton, and Hyatt Regency face the same "shift work" challenge as airlines. Housekeeping, front desk, and F&B staff often work early mornings, late nights, and weekends. Use 45F to fund backup care partnerships that cover non-traditional hours.

Guam Compliance & Resources

📋 Guam DRT (Filing)

File Form 1120-GU with Form 8882 attached to claim the 45F credit against Guam tax liability.

Guam Dept of Revenue & Taxation →

👶 Child Care Licensing

Department of Public Health & Social Services (DPHSS) handles child care licensing in Guam.

DPHSS →

📄 IRS Form 8882

The same form used on the mainland—attach it to your Guam 1120-GU return.

Form 8882 Instructions →

🏢 US Branches

If you have US Federal tax liability, you can also file with the IRS for US Treasury payment.

IRS →

Guam Child Care Landscape

45FVia Mirror Code

DRTFile Locally

24/7Tourism/Aviation

Key Guam Markets

Major employers leveraging child care strategies:

Tamuning/Tumon Bay – Hotels, resorts, tourism, retail
Hagåtña – Government, finance, professional services
Dededo – Retail, healthcare, residential services
Barrigada – Airport operations (United, Korean Air), logistics
Yigo – Military contractors, construction
Mangilao – University of Guam, education

Guam Child Care Tax Credit FAQ

How does the "Mirror Tax" system work in Guam?

Guam uses a "Mirror Code" tax system where the Guam Tax Code mirrors the US Internal Revenue Code. This means Section 45F exists automatically in Guam law. Guam corporations file with the Guam Department of Revenue and Taxation (DRT)—not the IRS—and claim the credit against their local Guam income tax liability.

Where do I file to claim the 45F credit in Guam?

Guam corporations: File Form 1120-GU with the Guam Department of Revenue and Taxation (DRT). Attach Form 8882 to that Guam return. The credit check comes from GovGuam, not the US Treasury (unless you're a US branch with US tax liability).

Can US companies with Guam operations claim 45F?

Yes! US-based companies with operations in Guam can claim 45F on their US Federal return (Form 1120 with Form 8882) for child care expenses related to their Guam workforce. In this case, the credit comes from the US Treasury.

What is the United Airlines model for Guam?

United Airlines operates a massive hub at Antonio B. Won Pat International Airport with 24/7 flight operations. They offer backup care and benefits to support their ground crew and flight attendants living on the island, using 45F to offset these costs. This model works for any employer with shift workers.

Which agency handles child care licensing in Guam?

The Department of Public Health & Social Services (DPHSS) handles child care licensing in Guam. Any provider licensed by DPHSS qualifies for 45F purposes.

Ready to Claim 45F in Guam?

Use our calculator to estimate your savings, then file Form 8882 with your Guam 1120-GU!

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