Ala. Admin. Code r. 281-2-1-.13 - Decertification

Current through Register Vol. 40, No. 6, March 31, 2022

(1) Decertification of a CAPCO or one or more of its investment pools may cause the recapture of premium tax credits previously claimed with respect to program one or program two and the forfeiture of future premium tax credits to be claimed with respect to such program by certified investors with respect to the company, as follows:
(a) Except as set forth in subdivision (b) of subsection (1) of this section, decertification of a CAPCO or a particular investment pool on or before the third (3rd) anniversary of an investment pool's allocation date causes the recapture of any premium tax credit previously claimed with respect to such program and the forfeiture of any future premium tax credit to be claimed by a certified investor with respect to such investment pool.
(b) For an investment pool that meets the requirements for continued certification under Section 6(a)(1) of the Act and Regulation 281-2-1-.09(1)(a) and (b) with respect to program one or program two, as applicable, and subsequently fails to meet the requirements for continued certification under Section 6(a)(2) of the Act and Regulation 281-2-1-.09(1)(c) and (d) with respect to the applicable program, any premium tax credit that has been or will be taken by a certified investor in such investment pool on or before the third (3rd) anniversary of the investment pool's allocation date with respect to the applicable program is not subject to recapture or forfeiture, but any premium tax credit that has been or will be taken by a certified investor after the third (3rd) anniversary of such allocation date of the CAPCO with respect to the applicable program is subject to recapture or forfeiture.
(c) For an investment pool that has met the requirements for continued certification under Section 6(a)(l) and (2) of the Act and Regulation 281-2-1-.09(1) with respect to either program one or program two and is subsequently decertified, any premium tax credit that has been or will be taken by a certified investor in such investment pool on or before the fifth (5th) anniversary of the investment pool's allocation date with respect to the applicable program is not subject to recapture or forfeiture, but any premium tax credit to be taken after the fifth (5th) anniversary of such allocation date with respect to the applicable program is subject to forfeiture only if the investment pool or CAPCO is decertified on or before the fifth anniversary of such allocation date.
(d) For a CAPCO that (i) has invested an amount cumulatively equal to one hundred percent (100%) of the certified capital of a particular investment pool in qualified investments with respect to the applicable program, and (ii) in the case of a program two investment pool, has invested at least $75,000 of such program two investment pool in no less than five (5) qualified diversity businesses, for a cumulative investment amount of at least $375,000, any premium tax credit claimed or to be claimed by a certified investor in such investment pool with respect to the applicable program is not subject to recapture or forfeiture under the Act.
(2) The ADO shall send written notice to the address of each certified investor whose premium tax credit is subject to recapture or forfeiture, using the address shown on the last premium tax filing.
(3) In the event that decertification of a CAPCO or one or more of its investment pools occurs with respect to a particular program, investor(s) in the CAPCO whose premium tax credit is subject to recapture of forfeiture shall, within thirty (30) days of receipt of notice sent by the ADO, submit funds in the amount of all premium tax credits previously claimed by investor with respect to the applicable program and subject to recapture, if any, with respect to its investment in the affected investment pool(s). In the event an investor fails to provide the ADO with such funds within the thirty (30) day period, a penalty shall be added to such payment. The penalty shall be equal to the product of (x) the amount of the payment, (y) the number of days elapsed from the date on which the funds were due or the date the funds were paid to investors or a CAPCO affiliate and (z) the prime rate plus three (3) percentage points divided by three hundred sixty (360). In addition, the certified investor shall pay any legal or other costs relating to the collection of such payment. Payment shall be in the form of a cashier's check made payable to the ADO, or a wire transfer to the ADO.

Notes

Ala. Admin. Code r. 281-2-1-.13
New Rule: Filed July 25, 2003; effective August 29, 2003. Amended: Filed February 6, 2008; effective March 12, 2008. Amended: Filed May 8, 2008; effective June 12, 2008.

Author: F. Neal Wade

Statutory Authority: Code of Ala. 1975, as amended; Act 2002-429.

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