Ohio Administrative Code › Title 122:22 - New Markets Tax Credit › Chapter 122:22-1 - General Provisions › Section 122:22-1-05 - Monitoring and recapture

Current through all regulations passed and filed through July 1, 2024
(A) The
			 director will monitor compliance of state allocatees with the terms and
			 conditions of allocation agreements and program guidelines. If subsidiary CDE's
			 are parties to an allocation agreement, the director will monitor compliance on
			 a consolidated basis for the total amount of the credit allocation made
			 pursuant to the allocation agreement.
(B)
								The state
			 allocatee shall notify the director of any notice of recapture or any potential
			 event of recapture pursuant to section 45D(g) of the Internal Revenue Code and
			 section  1.45  D-1(e)(2) of Title 26 of
			 the Code of Federal Regulations, as such federal laws and regulations exist on
			 the effective date of the enactment of section
			  5725.33  of the Revised Code,
			 October 16, 2009. Such notice shall be given in writing and submitted to the
			 director promptly, but in any event within thirty days of the recapture
			 event.
(C) In the event of any recapture pursuant to section
			 45D(g) of the Internal Revenue Code and section
			  1.45  D-1(e)(2) of Title 26 of
			 the Code of Federal Regulations, as such federal laws and regulations exist on
			 the effective date of the enactment of section
			  5725.33  of the Revised Code,
			 October 16, 2009, all new markets tax credits
			 claimed by any taxpayer in respect of each equity investment subject to
			 recapture of federal new markets tax credits
			 shall also be subject to recapture by the state of Ohio. Following receipt of
			 notice by the state allocatee of a recapture event of federal new markets tax credits, the director shall notify the tax
			 commissioner and the superintendent and request that taxes be assessed against
			 each NMTC claimant subject to the jurisdiction of the tax commissioner and the
			 superintendent, respectively, in the aggregate amount of new markets tax credits claimed by each such taxpayer in respect
			 of the affected equity investments and all applicable interest.
(D)
			 In addition to recapture under the circumstances described in paragraph (B) of
			 this rule, new markets tax credits shall be
			 subject to recapture if the director determines that more than fifteen per cent
			 of the proceeds of an investment for which the tax credit is claimed were used
			 other than for qualified low-income community business investments. The
			 director shall notify the state allocatee in writing if the director identifies
			 any circumstance indicating potential recapture under this paragraph. The state
			 allocatee shall have thirty days after the date of the director's notice to
			 respond in writing. The director shall issue a preliminary written
			 determination, which shall state the director's findings and conclusion on
			 which the recapture determination is based. The state allocatee shall have the
			 right to request within thirty days after the date of the preliminary
			 determination a hearing with the director to refute any of the director's
			 findings and conclusions. Thereafter, the director shall issue a final written
			 determination. If the director determines that a recapture event has occurred,
			 the director shall notify the tax commissioner and the superintendent and
			 request that taxes be assessed against each NMTC claimant subject to the
			 jurisdiction of the tax commissioner and the superintendent, respectively, in
			 the aggregate amount of new markets tax credits
			 claimed by each such taxpayer in respect of the affected equity investments and
			 all applicable interest.