Alabama Administrative Code › Title 460 - ALABAMA HISTORICAL COMMISSION › Chapter 460-X-23 - ALABAMA HISTORIC REHABILITATION TAX CREDIT › Section 460-X-23-.07 - Tax Credit Allocation Reservation

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Once the Commission has determined that
			 Parts A and B of the Application are complete, the Commission will issue a Tax
			 Credit Allocation Reservation in the amount based on the estimated qualified
			 rehabilitation expenditures provided by the Applicant on the Part B of the
			 Application. Tax Credit Allocation Reservations will be issued in the order
			 that its request is listed on the Reservation Priority List.
(2)
Supplemental Tax Credit
			 Allocation Reservation
. In the event the amount of qualified
			 rehabilitation expenditures incurred by the Owner exceeds the amount of
			 qualified rehabilitation expenditures estimated on Part B of the Application
			 for the purpose of establishing the Tax Credit Allocation Reservation, the
			 Applicant may, at any time after Part B of the Application has been approved
			 for compliance with the Standards but before the issuance of a Tax Credit
			 Certificate, apply to the Commission for a reservation of a supplemental Tax
			 Credit Application Reservation in an amount equal to the excess. Applications
			 for a supplemental Tax Credit Application Reservation shall be made on a form
			 prescribed and available from the Commission at no cost and shall be issued
			 subject to availability based on the Aggregate Tax Credit Allocation Amount and
			 the placement on the Reservation Priority List. For the purpose of placement on
			 the Reservation Priority List, the request will be considered a new Application
			 and will added to the next available position on the list. Applicants who
			 receive a Supplemental Tax Credit Allocation Reservation will be invoiced for a
			 fee in the amount of one percent (1%) of the amount of the excess qualified
			 rehabilitation expenditures unless the Applicant has paid the maximum ten
			 thousand dollar ($10,000.00) fee for the same Project.
(3)
Commission
			 Tracking
. The Commission shall track the cumulative amount of Tax
			 Credit Allocation Reservations and will discontinue issuing Tax Credit
			 Allocation Reservations once the total has reached the Aggregate Tax Credit
			 Allocation Amount. When the Aggregate Tax Credit Allocation Amount has been
			 reached, no further Tax Credit Allocation Reservations will be made until: 1)
			 additional amounts are returned through the rescission of Tax Credit Allocation
			 Reservations; or 2) a new Aggregate Tax Credit Allocation Amount becomes
			 available under the terms of these regulations. If an Applicant has applied for
			 a Tax Credit Allocation Reservation that exceeds the remaining allocation
			 available under Aggregate Tax Credit Allocation Amount, the Commission shall
			 issue a Tax Credit Allocation Reservation in the amount of the available
			 partial allocation (the "Partial Allocation"), and the amount requested by the
			 Application that exceeds the Partial Allocation (the "Excess Allocation") shall
			 remain in the first position on the Reservation Priority List until additional
			 amounts are available pursuant to the previous sentence, at which time the
			 Commission shall issue a Tax Credit Allocation Reservation in the amount of the
			 Excess Allocation.
(4)
Aggregate Tax Credit Allocation Amount Limits
. The
			 availability of Tax Credit Allocation Reservations is limited to the Aggregate
			 Tax Credit Allocation Amount per tax year beginning on May 15, 2013 and
			 extending through the Expiration of tax credits as defined in Section
			 460-X-23.13. If all of the Aggregate Tax Credit Allocation Amount for any tax
			 year is not requested and reserved, any unreserved tax credit allocations may
			 be utilized by the Commission in awarding tax credits in subsequent years. No
			 tax credit claimed for any Qualified Rehabilitation Expenditures may exceed
			 five million dollars ($5,000,000) for all allowable property types except
			 Certified Historic Residential Structures and fifty thousand dollars ($50,000)
			 for Certified Historic Residential Structures. Applications for the reservation
			 of tax credits will be accepted beginning October 1, 2013, but no tax credit
			 may be credited before the taxpayer's return for the taxable year 2014. All
			 Applications under this Program shall be received before May 15,
			 2016.
(5)
Projects Not
			 Likely to Receive a Reservation
. The Commission shall notify
			 Applicants in writing of the status for Projects that are not likely to receive
			 a Tax Credit Allocation Reservation because of the Project's place on the
			 Reservation Priority List. Applicants will be notified in writing of any
			 eligibility determination and the Project's place in the priority order. The
			 Applicant will have thirty (30) days to notify the Commission in writing that
			 the Applicant desires to have the Project remain on the Reservation Priority
			 List. If so, the Project will remain on the priority list for up to two years
			 from the date the Application was made. Failure to notify the Commission will
			 result in the Project being removed from the Reservation Priority List. The
			 Applicant may re-apply for the Project, but it will be treated as a new
			 Application.
(6)
All
			 Requirements Shall be Met
. A Tax Credit Allocation Reservation
			 reserves a credit in the name of the applicant only. However, no actual
			 Certificate of Credit which can be used by the applicant will be issued until
			 all the requirements of the program have been satisfied as certified by the
			 Commission.
(7)
Rescission
. If a Tax Credit Allocation Reservation is
			 rescinded, its tax credit allocation will be returned to the Aggregate Tax
			 Credit Allocation Amount available. Any Applicant whose Tax Credit Allocation
			 Reservation is rescinded shall be notified in writing of the rescission by the
			 Commission. A new Application may be submitted, but it will be treated as a new
			 Application and will be charged a new Application fee.
(a) If, at any time, the Commission
			 determines that the proposed or ongoing rehabilitation work is not consistent
			 with the Standards, the reservation of tax credits for the Applicant may be
			 rescinded.
(b) If, at any time, the
			 Commission has reason to believe that a Project has become inactive or that it
			 is not likely that it will be able to meet any or all of the requirements of
			 the Program, it shall notify the Applicant by registered or certified mail of
			 the Commission's intent to rescind the Tax Credit Allocation Reservation. If
			 the Applicant fails to respond within thirty (30) calendar days receipt of the
			 notice that the Project is still active, the Commission may rescind the Tax
			 Credit Allocation Reservation.