Current through Register Vol. 40, No. 6, March 31, 2022
(a) The Department
may not certify qualified equity investments that can result in the utilization
of more than $20 million in tax credits in any tax year.
(b) For purposes of paragraph (1), tax year
shall mean any calendar year.
Tax Credit is deemed to be utilized in each of years two through seven subsequent
to the issuance of the qualified equity investment on the anniversary date of
such investment. The Department shall not authorize Tax Credits in excess of
twenty million dollars ($20,000,000) in any calendar year.
(2) Ten million dollars ($10,000,000) shall be
the maximum amount of Qualified Low-Income Community Investments made by a
Qualified Community Development Entity and its affiliates outstanding to a
Qualified Active Low-Income Community Business. Any amounts returned or repaid by
such Qualified Active Low-Income Community Business may be reinvested in such
Qualified Active Low-Income Community Business and not be counted twice towards
the $10,000,000 limit.
amounts received during a calendar year as repayment of principal on a loan that
is a Qualified Low-Income Community Investment are treated as continuously
invested in a Qualified Low-Income Community Investment if the amounts are
reinvested in another Qualified Low-income Community Investment by the end of the
following calendar year.
Qualified Community Development Entities that issue Qualified Equity Investments
shall submit a report within the first five business days after the first
anniversary of the initial credit allowance date that provides proof that at
least 85 percent of its cash purchase price was used to make Qualified Low-Income
Community Investments in Qualified Active Low-Income Community Businesses located
in Alabama. Such report shall include (a) a bank statement of such Qualified
Community Development Entity evidencing each Qualified Low-Income Community
Investment and (b) evidence that such business was a Qualified Active Low-Income
Community Business at the time of such Qualified Low-Income Community
Qualified Community Development Entity shall submit an annual report within 45
days of the beginning of the calendar year during the compliance period on a form
provided by Commerce. No annual report shall be due prior to the first
anniversary of the initial credit allowance date. The form shall be remitted to
Commerce both in electronic and hard copy formats. The report will include but is
not limited to the following:
(a) number of
employment positions created and retained as a result of qualified low-income
community investments; and
average annual salary of positions described in subparagraph (a) of this
Qualified Community Development Entity is not required to provide the annual
report set forth in paragraph 5 of this section for Qualified Low-Income
Community Investments that have been redeemed or repaid in a prior
(7) The Qualified Community
Development Entity must also submit the report set forth in Section 9 of the act
on or before the 30th day prior to the third and sixth
anniversaries of the issuance of each Qualified Equity Investment.
Ala. Admin. Code r.
New Rule: Filed November 6,
2012; effective December 11, 2012.
Author: Department of Commerce
Code of Ala.
1975, as amended, §
41-9-202, Act No. 2012-483.