Nev. Admin. Code § 231A.120 - Submission of annual report by qualified community development entity
1. Except as otherwise provided in this
subsection, with regard to each qualified equity investment or impact qualified
equity investment for which a qualified community development entity or impact
qualified community development entity receives certification from the
Department pursuant to
NRS
231A.230, as amended by section 16 of Senate
Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360, the entity
shall submit to the Director an annual report for each of the 6 years
immediately following the date on which the qualified equity investment or
impact qualified equity investment was initially made. If the entity transfers,
pursuant to subsection 7 of
NRS
231A.230, as amended by section 16 of Senate
Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360, all or a
portion of its certified investment authority regarding the qualified equity
investment or impact qualified equity investment to another qualified community
development entity or impact qualified community development entity, as
applicable:
(a) The transferee shall submit
to the Director the annual report for the portion of the qualified equity
investment or impact qualified equity investment regarding which the transferee
receives certified investment authority; and
(b) The transferor shall submit to the
Director the annual report for the portion of the qualified equity investment
or impact qualified equity investment regarding which the transferor retains
certified investment authority.
2. The annual report required by subsection 1
must be submitted:
(a) Not earlier than
October 1 of the year to which the annual report relates and not later than
October 31 of the year to which the annual report relates; and
(b) In writing and in an electronic format
acceptable to the Director.
3. The first annual report required by
subsection 1 for a qualified equity investment or impact qualified equity
investment must:
(a) Provide evidence
satisfactory to the Director that 85 percent or more of the amount of the
qualified equity investment or impact qualified equity investment regarding
which the qualified community development entity or impact qualified community
development entity has certified investment authority has been invested in
applicable qualified low-income community investments in this State in
accordance with the requirements of subsection 3 of
NRS
231A.250, as amended by section 19 of Senate
Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3363, as
interpreted by the Department pursuant to NAC
231A.100;
(b) Identify, as applicable, any business
owned by a person who is a:
(1) Member of a
racial or ethnic minority group into which the qualified community development
entity made a qualified low-income community investment relating to the
qualified equity investment; or
(2)
Woman, disabled veteran, person who is lesbian, gay, bisexual or transgender or
member of a racial or ethnic minority group into which the impact qualified
community development entity made a qualified low-income community investment
relating to the impact qualified equity investment;
(c) Include a description of all
organizations, agencies and other groups with which the qualified community
development entity or impact qualified community development entity
collaborated in identifying or selecting a qualified active low-income
community business or impacted qualified active low-income community business
into which to make a qualified low-income community investment;
(d) For each qualified low-income community
investment relating to the qualified equity investment or impact qualified
equity investment:
(1) Include a bank
statement of the qualified community development entity or impact qualified
community development entity which clearly shows that the qualified low-income
community investment was made;
(2)
Provide evidence satisfactory to the Director, including, without limitation, a
certified statement from the president of the business or another similar
person, that the business into which the qualified low-income community
investment was made was a qualified active low-income community business or
impact qualified active low-income community business, as applicable, at the
time the qualified low-income community investment was made;
(3) With regard to the business identified in
subparagraph (2), indicate:
(I) The name of
the business;
(II) The physical
address of the business;
(III) The
county in which the physical address of the business is located;
(IV) The federal employer identification
number of the business;
(V) The
standard industrial classification of the business; and
(VI) The amount of the qualified low-income
community investment which was made in the business; and
(4) Include a projection of the total number
of jobs which will be created because of the qualified low-income community
investment and the total number of jobs which will be retained because of the
qualified low-income community investment; and
(e) Include any other information required by
the Director.
4. Except
as otherwise provided in subsection 6, the second through sixth annual reports
required by subsection 1 for a qualified equity investment or impact qualified
equity investment must:
(a) Identify, as
applicable, any business owned by a person who is a:
(1) Member of a racial or ethnic minority
group into which the qualified community development entity made a qualified
low-income community investment relating to the qualified equity investment;
or
(2) Woman, disabled veteran,
person who is lesbian, gay, bisexual or transgender or member of a racial or
ethnic minority group into which the impact qualified community development
entity made a qualified low-income community investment relating to the impact
qualified equity investment;
(b) Identify any organization, agency or
other group relating to, as applicable:
(1) A
racial or ethnic minority group with which the qualified community development
entity worked in making a qualified low-income community investment relating to
the qualified equity investment; or
(2) Women, disabled veterans, persons who are
lesbian, gay, bisexual or transgender or members of a racial or ethnic minority
group with which the impact qualified community development entity worked in
making a qualified low-income community investment relating to the impact
qualified equity investment;
(c) For each qualified low-income community
investment relating to the qualified equity investment or impact qualified
equity investment, as applicable, include the current total number of jobs
created because of the qualified low-income community investment and the
current total number of jobs retained because of the qualified low-income
community investment;
(d) With
regard to the numbers of jobs reported pursuant to paragraph (c), indicate, as
applicable:
(1) For each qualified low-income
community investment relating to a qualified equity investment, the current
total number of jobs created and the current total number of jobs retained for
persons who are members of a racial or ethnic minority group; or
(2) For each qualified low-income community
investment relating to an impact qualified equity investment, the current total
number of jobs created and the current total number of jobs retained for women,
disabled veterans, persons who are lesbian, gay, bisexual or transgender or
members of a racial or ethnic minority group;
(e) With regard to the jobs reported pursuant
to paragraph (c), indicate the average salary;
(f) Identify the current cost basis of the
qualified equity investment or impact qualified equity investment;
and
(g) Include any other
information required by the Director.
5. In an annual report required by subsection
1 for a qualified equity investment or impact qualified equity investment, the
qualified community development entity or impact qualified community
development entity may include any information in addition to the information
required pursuant to subsection 3 or 4 to demonstrate the effectiveness of a
qualified low-income community investment relating to the qualified equity
investment or impact qualified equity investment.
6. In the second through sixth annual reports
required by subsection 1 for a qualified equity investment or impact qualified
equity investment, the qualified community development entity or impact
qualified community development entity shall not include information relating
to a qualified low-income community investment which has been sold by, returned
to or repaid to the qualified community development entity or impact qualified
community development entity.
7.
For the purposes of subparagraph (4) of paragraph (d) of subsection 3:
(a) A job may be projected to be created if
the job is reasonably anticipated by the qualified community development entity
or impact qualified community development entity to meet the definition of "job
created" beginning at any time on or before the last credit allowance date for
the applicable qualified equity investment or impact qualified equity
investment and continuing for 26 or more consecutive weeks, during which time
the hours worked in the position are reasonably anticipated to average 30 or
more hours per week.
(b) A job may
be projected to be retained if the job is reasonably anticipated by the
qualified community development entity or impact qualified community
development entity:
(1) To meet the definition
of "job retained" at any time on or before the last credit allowance date for
the applicable qualified equity investment or impact qualified equity
investment; and
(2) To be filled by
an employee who meets the requirements of subparagraphs (1), (2) and (3) of
paragraph (a) of subsection 8 beginning when the job meets the definition of
"job retained" and continuing for 26 or more consecutive weeks, during which
time the hours worked in the position are reasonably anticipated to average 30
or more hours per week.
8. As used in this section:
(a) "Job created" means, as represented by a
qualified active low-income community business or impact qualified active
low-income community business located within this State, a new, full-time and
permanent position at the qualified active low-income community business or
impact qualified active low-income community business which is filled by one or
more natural persons, each of whom:
(1) Is a
resident of this State and is expected by the qualified community development
entity or impact qualified community development entity to be a resident of
this State during the entire year for which the applicable annual report is
made;
(2) Works and, after being
hired, continues to work for the remainder of the year for which the applicable
annual report is made:
(I) On the premises of
the qualified active low-income community business or impact qualified active
low-income community business, as applicable, located within this State;
or
(II) Off the premises of the
qualified active low-income community business or impact qualified active
low-income community business, as applicable, only if the position is a
qualified off-premises position; and
(3) Is employed by the qualified active
low-income community business or impact qualified active low-income community
business, as applicable:
(I) Directly;
or
(II) As a contractual employee
only if the qualified active low-income community business or impact qualified
active low-income community business, as applicable, offers benefits to the
contractual employee which are comparable to the benefits the business offers
to the persons it employs directly.
The term also includes a new position related to a qualified active low-income community business or impact qualified active low-income community business which is filled by a self-employed contractor if, during the year for which the applicable annual report is made, the self-employed contractor pays taxes to this State and works not less than 1,040 hours for the qualified active low-income community business or impact qualified active low-income community business, as applicable, performing professional services for the business.
(b) "Job retained" means, as represented by a
qualified active low-income community business or impact qualified active
low-income community business located within this State, a position filled by
an employee of the qualified active low-income community business or impact
qualified active low-income community business, as applicable, if the employee
meets the requirements of subparagraphs (1), (2) and (3) of paragraph (a), the
employee was hired by the business to fill the position before the business
received the applicable qualified low-income community investment, and:
(1) The qualified active low-income community
business or impact qualified active low-income community business was in
existence and located in this State for not less than 2 years immediately
preceding the date on which the business received the applicable qualified
low-income community investment, and:
(I) The
qualified active low-income community business or impact qualified active
low-income community business, as applicable, lost 20 percent or more of its
net worth during either the 1-year period or the 2-year period immediately
preceding the date on which the business received the applicable qualified
low-income community investment; or
(II) The president of the qualified active
low-income community business or impact qualified active low-income community
business, as applicable, or another similar person certifies that the position
would not have been retained but for the applicable qualified low-income
community investment; or
(2) The position would have been transferred
to a location outside of this State but for the applicable qualified low-income
community investment, as evidenced either by a certified statement from the
president of the qualified active low-income community business or impact
qualified active low-income community business, as applicable, or another
similar person or by a written and accepted offer of relocation assistance from
an economic development agency from another state.
(c) "Qualified off-premises position" means a
position:
(1) Which has been filled for 26 or
more consecutive weeks;
(2) For
which, during the time the position has been filled, the hours worked in the
position have averaged 30 or more hours per week; and
(3) For which it is anticipated by the
qualified community development entity or impact qualified community
development entity that the hours worked in the position will continue to
average 30 or more hours per week for each tax year of the qualified active
low-income community business or impact qualified active low-income community
business which occurs, in whole or in part, on or before the last credit
allowance date for the applicable qualified equity investment or impact
qualified equity investment.
Notes
NRS 231A.150, 231A.230, as amended by section 16 of Senate Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
1. Except as otherwise provided in this subsection, with regard to each qualified equity investment or impact qualified equity investment for which a qualified community development entity or impact qualified community development entity receives certification from the Department pursuant to NRS 231A.230, as amended by section 16 of Senate Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360, the entity shall submit to the Director an annual report for each of the 6 years immediately following the date on which the qualified equity investment or impact qualified equity investment was initially made. If the entity transfers, pursuant to subsection 7 of NRS 231A.230, as amended by section 16 of Senate Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360, all or a portion of its certified investment authority regarding the qualified equity investment or impact qualified equity investment to another qualified community development entity or impact qualified community development entity, as applicable:
(a) The transferee shall submit to the Director the annual report for the portion of the qualified equity investment or impact qualified equity investment regarding which the transferee receives certified investment authority; and
(b) The transferor shall submit to the Director the annual report for the portion of the qualified equity investment or impact qualified equity investment regarding which the transferor retains certified investment authority.
2. The annual report required by subsection 1 must be submitted:
(a) Not earlier than October 1 of the year to which the annual report relates and not later than October 31 of the year to which the annual report relates; and
(b) In writing and in an electronic format acceptable to the Director.
3. The first annual report required by subsection 1 for a qualified equity investment or impact qualified equity investment must:
(a) Provide evidence satisfactory to the Director that 85 percent or more of the amount of the qualified equity investment or impact qualified equity investment regarding which the qualified community development entity or impact qualified community development entity has certified investment authority has been invested in applicable qualified low-income community investments in this State in accordance with the requirements of subsection 3 of NRS 231A.250, as amended by section 19 of Senate Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3363, as interpreted by the Department pursuant to NAC 231A.100;
(b) Identify, as applicable, any business owned by a person who is a:
(1) Member of a racial or ethnic minority group into which the qualified community development entity made a qualified low-income community investment relating to the qualified equity investment; or
(2) Woman, disabled veteran, person who is lesbian, gay, bisexual or transgender or member of a racial or ethnic minority group into which the impact qualified community development entity made a qualified low-income community investment relating to the impact qualified equity investment;
(c) Include a description of all organizations, agencies and other groups with which the qualified community development entity or impact qualified community development entity collaborated in identifying or selecting a qualified active low-income community business or impacted qualified active low-income community business into which to make a qualified low-income community investment;
(d) For each qualified low-income community investment relating to the qualified equity investment or impact qualified equity investment:
(1) Include a bank statement of the qualified community development entity or impact qualified community development entity which clearly shows that the qualified low-income community investment was made;
(2) Provide evidence satisfactory to the Director, including, without limitation, a certified statement from the president of the business or another similar person, that the business into which the qualified low-income community investment was made was a qualified active low-income community business or impact qualified active low-income community business, as applicable, at the time the qualified low-income community investment was made;
(3) With regard to the business identified in subparagraph (2), indicate:
(I) The name of the business;
(II) The physical address of the business;
(III) The county in which the physical address of the business is located;
(IV) The federal employer identification number of the business;
(V) The standard industrial classification of the business; and
(VI) The amount of the qualified low-income community investment which was made in the business; and
(4) Include a projection of the total number of jobs which will be created because of the qualified low-income community investment and the total number of jobs which will be retained because of the qualified low-income community investment; and
(e) Include any other information required by the Director.
4. Except as otherwise provided in subsection 6, the second through sixth annual reports required by subsection 1 for a qualified equity investment or impact qualified equity investment must:
(a) Identify, as applicable, any business owned by a person who is a:
(1) Member of a racial or ethnic minority group into which the qualified community development entity made a qualified low-income community investment relating to the qualified equity investment; or
(2) Woman, disabled veteran, person who is lesbian, gay, bisexual or transgender or member of a racial or ethnic minority group into which the impact qualified community development entity made a qualified low-income community investment relating to the impact qualified equity investment;
(b) Identify any organization, agency or other group relating to, as applicable:
(1) A racial or ethnic minority group with which the qualified community development entity worked in making a qualified low-income community investment relating to the qualified equity investment; or
(2) Women, disabled veterans, persons who are lesbian, gay, bisexual or transgender or members of a racial or ethnic minority group with which the impact qualified community development entity worked in making a qualified low-income community investment relating to the impact qualified equity investment;
(c) For each qualified low-income community investment relating to the qualified equity investment or impact qualified equity investment, as applicable, include the current total number of jobs created because of the qualified low-income community investment and the current total number of jobs retained because of the qualified low-income community investment;
(d) With regard to the numbers of jobs reported pursuant to paragraph (c), indicate, as applicable:
(1) For each qualified low-income community investment relating to a qualified equity investment, the current total number of jobs created and the current total number of jobs retained for persons who are members of a racial or ethnic minority group; or
(2) For each qualified low-income community investment relating to an impact qualified equity investment, the current total number of jobs created and the current total number of jobs retained for women, disabled veterans, persons who are lesbian, gay, bisexual or transgender or members of a racial or ethnic minority group;
(e) With regard to the jobs reported pursuant to paragraph (c), indicate the average salary;
(f) Identify the current cost basis of the qualified equity investment or impact qualified equity investment; and
(g) Include any other information required by the Director.
5. In an annual report required by subsection 1 for a qualified equity investment or impact qualified equity investment, the qualified community development entity or impact qualified community development entity may include any information in addition to the information required pursuant to subsection 3 or 4 to demonstrate the effectiveness of a qualified low-income community investment relating to the qualified equity investment or impact qualified equity investment.
6. In the second through sixth annual reports required by subsection 1 for a qualified equity investment or impact qualified equity investment, the qualified community development entity or impact qualified community development entity shall not include information relating to a qualified low-income community investment which has been sold by, returned to or repaid to the qualified community development entity or impact qualified community development entity.
7. For the purposes of subparagraph (4) of paragraph (d) of subsection 3:
(a) A job may be projected to be created if the job is reasonably anticipated by the qualified community development entity or impact qualified community development entity to meet the definition of "job created" beginning at any time on or before the last credit allowance date for the applicable qualified equity investment or impact qualified equity investment and continuing for 26 or more consecutive weeks, during which time the hours worked in the position are reasonably anticipated to average 30 or more hours per week.
(b) A job may be projected to be retained if the job is reasonably anticipated by the qualified community development entity or impact qualified community development entity:
(1) To meet the definition of "job retained" at any time on or before the last credit allowance date for the applicable qualified equity investment or impact qualified equity investment; and
(2) To be filled by an employee who meets the requirements of subparagraphs (1), (2) and (3) of paragraph (a) of subsection 8 beginning when the job meets the definition of "job retained" and continuing for 26 or more consecutive weeks, during which time the hours worked in the position are reasonably anticipated to average 30 or more hours per week.
8. As used in this section:
(a) "Job created" means, as represented by a qualified active low-income community business or impact qualified active low-income community business located within this State, a new, full-time and permanent position at the qualified active low-income community business or impact qualified active low-income community business which is filled by one or more natural persons, each of whom:
(1) Is a resident of this State and is expected by the qualified community development entity or impact qualified community development entity to be a resident of this State during the entire year for which the applicable annual report is made;
(2) Works and, after being hired, continues to work for the remainder of the year for which the applicable annual report is made:
(I) On the premises of the qualified active low-income community business or impact qualified active low-income community business, as applicable, located within this State; or
(II) Off the premises of the qualified active low-income community business or impact qualified active low-income community business, as applicable, only if the position is a qualified off-premises position; and
(3) Is employed by the qualified active low-income community business or impact qualified active low-income community business, as applicable:
(I) Directly; or
(II) As a contractual employee only if the qualified active low-income community business or impact qualified active low-income community business, as applicable, offers benefits to the contractual employee which are comparable to the benefits the business offers to the persons it employs directly.
The term also includes a new position related to a qualified active low-income community business or impact qualified active low-income community business which is filled by a self-employed contractor if, during the year for which the applicable annual report is made, the self-employed contractor pays taxes to this State and works not less than 1,040 hours for the qualified active low-income community business or impact qualified active low-income community business, as applicable, performing professional services for the business.
(b) "Job retained" means, as represented by a qualified active low-income community business or impact qualified active low-income community business located within this State, a position filled by an employee of the qualified active low-income community business or impact qualified active low-income community business, as applicable, if the employee meets the requirements of subparagraphs (1), (2) and (3) of paragraph (a), the employee was hired by the business to fill the position before the business received the applicable qualified low-income community investment, and:
(1) The qualified active low-income community business or impact qualified active low-income community business was in existence and located in this State for not less than 2 years immediately preceding the date on which the business received the applicable qualified low-income community investment, and:
(I) The qualified active low-income community business or impact qualified active low-income community business, as applicable, lost 20 percent or more of its net worth during either the 1-year period or the 2-year period immediately preceding the date on which the business received the applicable qualified low-income community investment; or
(II) The president of the qualified active low-income community business or impact qualified active low-income community business, as applicable, or another similar person certifies that the position would not have been retained but for the applicable qualified low-income community investment; or
(2) The position would have been transferred to a location outside of this State but for the applicable qualified low-income community investment, as evidenced either by a certified statement from the president of the qualified active low-income community business or impact qualified active low-income community business, as applicable, or another similar person or by a written and accepted offer of relocation assistance from an economic development agency from another state.
(c) "Qualified off-premises position" means a position:
(1) Which has been filled for 26 or more consecutive weeks;
(2) For which, during the time the position has been filled, the hours worked in the position have averaged 30 or more hours per week; and
(3) For which it is anticipated by the qualified community development entity or impact qualified community development entity that the hours worked in the position will continue to average 30 or more hours per week for each tax year of the qualified active low-income community business or impact qualified active low-income community business which occurs, in whole or in part, on or before the last credit allowance date for the applicable qualified equity investment or impact qualified equity investment.
Notes
NRS 231A.150, 231A.230, as amended by section 16 of Senate Bill No. 240, chapter 517, Statutes of Nevada 2023, at page 3360