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-.02 - New Markets Development Program - Application And Certification

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Only an Applicant
			 that is certified as a Qualified Community Development Entity under the Federal
			 New Markets Tax Credit Program and has entered into an allocation agreement with
			 the CDFI Fund is eligible to apply for an allocation of Qualified Equity
			 Investment authority under the Program.
(2) Commerce shall begin accepting applications
			 on August 31, 2012.
(3) Applicants
			 are encouraged to identify or name in the Application the Qualified Active
			 Low-income Community Businesses in which they will invest, but at a minimum each
			 Applicant must provide the amount of investment and the calendar year in which
			 the investment will be issued and a detailed description of the types of
			 Qualified Low Income Community Investments the Applicant will make, such
			 description to be in form and substance acceptable to the Department. The
			 Department encourages the Applicant to provide examples of other similar types of
			 Qualified Active Low Income-Community Businesses in which the Applicant has
			 previously invested under the Federal New Markets Tax Credit Program.
(4) The Applicant should include the name,
			 address, tax identification number of the entity, and evidence of the entity's
			 certification as a Qualified Community Development Entity, identity of the
			 investors which the Applicant anticipates will invest in the Applicant, a
			 certificate executed by an executive officer of the entity attesting that the
			 allocation agreement remains in effect and has not been revoked or cancelled by
			 the Community Development Financial Institutions Fund, a description of the
			 proposed amount, structure, and purchaser of the equity investment or long-term
			 debt security, and any other information and/or documentation required in the Act
			 or otherwise required by the Secretary including, without limitation, information
			 and/or documentation otherwise required by applicable law. In the case of any
			 conflict between this chapter and the Act the provisions of the Act shall
			 govern.
(5) If Tax Credits are
			 allocated to a partner, member or shareholder of a "pass-through" entity pursuant
			 to Section 5 of the Act, the Applicant, or the successor holder of Qualified
			 Equity Investment authority under paragraph 12 of this section, must notify
			 Commerce of such allocation of Tax Credits, including the name and Employee
			 Identification Number of any such ultimate user of the Tax Credits, prior to such
			 taxpayer claiming Tax Credits on any tax return. A Qualified Community
			 Development Entity shall notify Commerce of any subsequent allocation of Tax
			 Credits pursuant to Section 5 of the Act and of any subsequent holder of a
			 Qualified Equity Investment under Section 4 of the Act.
(6) A nonrefundable Application fee of five
			 thousand dollars ($5,000) shall accompany each Application. The fee shall be paid
			 in the form of a cashier's check or certified check drawn on the funds of a bank
			 with a physical location within the State and payable to the Alabama Department
			 of Commerce. Applications shall be submitted by hand or certified mail to Alabama
			 Department of Commerce, Alabama Center for Commerce, 401 Adams Avenue, Suite 670
			 Montgomery, Alabama 36104. Attention: Secretary of Commerce.
(7) Within 60 days after receipt of a completed
			 Application, Commerce shall review the Application for eligibility and shall
			 either grant or deny the Application in full or in part and inform the applicant
			 of the grounds for any denial. If granted, this document will serve as Notice of
			 Certification. The date of receipt shall be the date upon which Commerce marks
			 the Application received. The date on which the application is granted or denied
			 will be the date of the letter indicating such decision to the
			 applicant.
(8) If denied due to
			 insufficient documentation, the Applicant will have 15 days from the notice of
			 denial to complete and/or modify the Application and provide any additional
			 information required by Commerce. If approved, the Application shall be
			 considered complete as of the original date of submission. If the Applicant fails
			 to provide the information or complete its original Application, the original
			 Application shall remain denied and any subsequent allocation request shall be
			 resubmitted in full. The 15-day time period will be determined by the date on the
			 denial letter and the post-mark date of the letter containing the requested
			 information.
(9) If additional
			 documentation submitted pursuant to paragraph (8) is provided to the Department
			 within 15 business days and such documentation is deemed sufficient, the
			 Department shall provide the applicant with a Notice of Certification within 30
			 days of the receipt of the additional information. The date on which the
			 Application is granted or denied will be the date of the letter indicating such
			 decision to the Applicant.
(10) The
			 Applicant must issue the Qualified Equity Investment in the amount certified
			 within 90 days after receipt of a Notice of Certification.
(11) A Qualified Community Development Entity
			 whose own application and/or an affiliated entity's Application which is granted
			 must provide to the Department all of the following within 3 0 days, as
			 determined by the post-mark date, of the issuance of the Qualified Equity
			 Investments.
(a) Evidence of issuance of
			 Qualified Equity Investments required by paragraph (9). Such evidence must
			 include a bank statement of the Applicant reflecting such investment equal to the
			 certified amount, and any other evidence requested by the Secretary.
(b) The name, address, tax identification
			 number, and copy of certification of each Qualified Community Development Entity
			 in which the Applicant invested and the amount invested in each entity.
(c) The type of tax the credit allowed by the
			 Act will offset.
(d) To the extent
			 the purchaser is a Subchapter K Entity pursuant to §
									40-18-1(35),
Code of Ala. 1975
, the name and employee identification
			 number of each owners/shareholders/ member of the purchaser, and the allocation
			 agreement determining the amount of credit assigned to each owner/
			 shareholder/member of the Applicant. The information supplied should be based on
			 the issuance date required by paragraph (9).
(e) All other information as required by
			 Section 7 of "the Act" unknown to the Applicant as of the date of
			 application.