Alabama Administrative Code › Title 281 - ALABAMA DEPARTMENT OF COMMERCE, FORMERLY ALABAMA DEVELOPMENT OFFICE AND ALABAMA TOURISM DEPARTMENT/ALABAMA FILM OFFICE › Chapter 281-5-1 - ALABAMA NEW MARKETS DEVELOPMENT PROGRAM › Section 281-5-1-.03 - New Markets Development Program - Policy And Reporting

Current through Register Vol. 42, No. 9, June 28, 2024
(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 30th day prior to the third and sixth
			 anniversaries of the issuance of each Qualified Equity Investment.