Ala. Admin. Code r. 281-5-1-.03 - New Markets Development Program - Policy And Reporting

(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.

(c) A 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.

(3) Periodic 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.

(4) 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 Investment.

(5) Thereafter, the 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

(b) average annual salary of positions described in subparagraph (a) of this paragraph.

(6) The 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 year.

(7) The Qualified Community Development Entity must also submit the report set forth in Section 9 of the act on or before the 30^th day prior to the third and sixth anniversaries of the issuance of each Qualified Equity Investment.

Notes

Ala. Admin. Code r. 281-5-1-.03

New Rule: Filed November 6, 2012; effective December 11, 2012.

Author: Department of Commerce

Statutory Authority: Code of Ala. 1975, as amended, § 41-9-202, Act No. 2012-483.