New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter XVII - Certified Capital Companies Under Section 11 Of The Tax Law › Part 400 - Certified Capital Companies Under Section 11 Of The Tax Law › Section 400.5 - Receipt and allocation of certified investments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) After certification pursuant to section 11 (b)(7)  of the Tax Law, the
				certified capital company may receive an investment of certified capital or an
				irrevocable funding commitment subject only to the receipt of an allocation
				pursuant to section 11 (h)  of the Tax
				Law.
(b) Tax credits shall be
				allocated among certified investors in certified capital companies in the order
				that the information required pursuant to section 11 (c)(6)(A)  of the Tax Law
				is received by the department from certified capital companies, subject to the
				provisions of subdivision (c) of this section. Each filing by a certified
				capital company required by section 11(c)(6)(A) for an allocation described in
				section 11(h) shall be stamped as to date of receipt. All complete filings made
				on the same day shall be treated as having been made
				contemporaneously.
(c) Allocation
				requests by certified capital companies on behalf of their certified investors
				as specified in section 11(c)(6)(A) which are received by the department on or
				before May 1, 1998 shall be treated as having been received on May 1, 1998 for
				tax credits to be utilized in 1999 and, if satisfactory, shall be given equal
				priority for allocation.
(d) For
				purposes of section 11 (h)  of the Tax Law and
				this Part, an irrevocable funding commitment subject only to the receipt of an
				allocation will be deemed to constitute "an investment of certified capital" if
				a certified investor prepares and forwards to a certified capital company for
				filing with the department the information required by section 11 (c)(6)(A)  of the Tax Law,
				including an affidavit of the certified investor pursuant to which such
				investor shall become legally bound to transfer funds in the amount allocated
				up to the maximum investment set forth in its submission made pursuant to
				section 11(c)(6)(A) within five business days after the date of transmittal of
				notice of an allocation by the superintendent. The certified capital company
				shall, upon receipt of an investment of certified capital in cash pursuant to
				such allocation, submit to the department, no later than one business day
				thereafter, evidence acceptable to the department that the cash was received.
				Such evidence may, in the case of wire transfer, be a certification from the
				financial institution that administered the transfer certifying that such
				transfer was completed. If the department has not received the evidence as
				required that the funds have been received within the five-day period, the
				allocation shall expire to the extent that funds are not received. In the event
				that the allocation has expired as a result of the department not receiving
				evidence that funds have been received by a certified capital company within
				the five-day period, then the allocation of tax credits shall be redistributed
				to other certified investors proportionately.
(e) In the event that, on the same date, the
				department receives from two or more certified capital companies, on behalf of
				their respective certified investors, the documentation specified in section
				11(c)(6)(A) requesting an allocation of tax credits, and the amount of such
				investments of certified capital in all certified capital companies results in
				a request for allocation of credits that exceeds in the aggregate the available
				tax credits as provided in section
				400.4(a) 
				of this Part, the amount of tax credits approved shall be allocated among such
				certified investors in proportion to the amounts of tax credits requested. The
				aggregate amount of tax credits requested by a certified capital company and
				its affiliate or affiliates shall not exceed the aggregate tax credits
				available for such year, and any aggregate amount of tax credits requested by
				such certified capital company and its affiliate or affiliates in excess of the
				aggregate limit available for such year shall be excluded in calculating the
				proportion of tax credits allocated to certified investors in such certified
				capital companies. Once the proportions are established, an amount up to $50
				million shall be allocated to respective certified investors in such certified
				capital companies for tax credits to be utilized beginning in 1999. Once
				proportions for the year 2000 are established, the amount of tax credits
				available as described in section
				400.4(a)(2) and
				(3)  of this Part shall be allocated to
				respective certified investors in such certified capital companies for tax
				credits to be utilized beginning in 2000.
(f) In the event a certified investor makes
				an investment of certified capital in a certified capital company and such
				certified capital is not eligible for tax credits due to the limitations of
				section 11(h), the certified investor may:
(1) withdraw such certified capital to the
				extent that the cash invested in the certified capital company exceeds the
				amount eligible for tax credits; or
(2) reduce its irrevocable funding commitment
				by the amount which is not eligible for tax credits, whichever is
				applicable.