Compilation of Rules and Regulations of the State of Georgia › Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS › Chapter 110-35 - GEORGIA AGRIBUSINESS AND RURAL JOBS ACT PROGRAM › Subject 110-35-1 - GEORGIA AGRIBUSINESS AND RURAL JOBS ACT › Rule 110-35-1-.08 - Recaptured Credits

Current through Rules and Regulations filed through June 27, 2024
(1) The Department may recapture, from an
				allocatee, the credit allowed under O.C.G.A. §
									33-1-25 if:
(a) The rural fund does not invest 100
				percent of its capital investment authority in qualified investments in the
				state of Georgia within two years of the closing date, with at least 10 percent
				of its capital investment authority initially invested in eligible businesses
				engaged in agribusiness as defined by the Department and at least 10 percent of
				such investment in agribusiness shall be equity investments;
(b) The rural fund, after satisfying the
				agribusiness and equity investment requirements above, fails to maintain
				qualified investments equal to 100 percent of its capital investment authority
				until the fifth anniversary of the credit allowance date. Qualified investments
				are considered maintained if the qualified investment was sold or repaid if the
				rural fund reinvests an amount equal to the capital returned or recovered by
				the rural fund from the original investment, exclusive of any profits realized,
				in other qualified investments in the state of Georgia within 12 months of the
				receipt of such capital. Amounts received periodically by a rural fund shall be
				treated as continually invested in qualified investments if the amounts are
				reinvested in one or more qualified investments by the end of the following
				calendar year. A rural fund is not required to reinvest capital returned from
				qualified investments after the fourth anniversary of the credit allowance
				date, and such qualified investments shall be considered held continuously by
				the rural fund through the fifth anniversary of the credit allowance
				date;
(c) Should the rural fund
				fail to meet the conditions of sections (a) and (b) until the fifth anniversary
				of the credit allowance date, the Department shall recapture credits based upon
				the following schedule:
(i) If the rural fund
				fails to invest, or fails to maintain said qualified investments at a
				percentage of at least 90 percent, all credits will be subject to
				recapture.
(ii) If the rural fund
				fails to invest, or fails to maintain said qualified investments at a
				percentage above 90 percent, but below 100 percent, the percentage subject to
				recapture will be equal to the amount by which the rural fund failed to achieve
				100 percent investment.
(d) The rural fund, before exiting the
				program in accordance with Section
				110-35-1-.11, makes a distribution
				or payment that results in the rural fund having less than 100 percent of its
				capital investment authority invested in qualified investments in this state or
				available for investment in qualified investments and held in cash and other
				marketable securities; or
(e) The
				rural fund makes an investment in a business that directly or indirectly owns
				or has the right to acquire an ownership interest in a rural fund or member or
				affiliate of a rural fund, including, but not limited to, a holder of a capital
				investment issued by the rural fund; or loan to or invest in a rural fund or
				member or affiliate of a rural fund, including, but not limited to, a holder of
				a capital investment issued by a rural fund, where the proceeds of such loan or
				investment are directly or indirectly used to fund or refinance the purchase of
				a capital investment under O.C.G.A. §
										33-1-25.