Oregon Administrative Rules › Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT › Division 630 - OREGON LOW INCOME COMMUNITY JOBS INITIATIVE › Section 123-630-0030 - Eligibility

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The following
			 conditions and/or criteria must exist for a taxpayer to be eligible for the
			 credit:
(a) A qualified community development
			 entity that issues a debt instrument may not make cash interest payments on the
			 debt instrument during the period commencing with its issuance and ending on
			 its final credit allowance date in excess of the sum of the cash interest
			 payments and the cumulative operating income, as defined in the regulations
			 promulgated under section 45D of the Internal Revenue Code,
			 of the qualified community development entity for the same period. This
			 limitation shall only apply to long-term debt securities issued by a qualified
			 community development entity that are designated as qualified equity
			 investments and shall not apply to other debt of the qualified community
			 development entity. Neither this paragraph nor the definition of "long-term
			 debt security" provided in ORS
			 315.529 in any way limits the
			 holder's ability to accelerate payments on the debt instrument in situations
			 where the qualified community development entity has defaulted on covenants
			 designed to ensure compliance with this section or section
			 45D of the Internal Revenue Code.
(b) A business is considered a
			 qualified active low-income community business for the duration of a qualified
			 community development entity's investment in or loan to the business if it is
			 reasonable to expect that at the time of the qualified community development
			 entity's investment in or loan to a qualified active low-income community
			 business, the business will continue throughout the duration of the investment
			 in or loan to the business.
(c) A
			 qualified equity investment must be designated a qualified equity investment by
			 the qualified community development entity and be certified by the department.
(d) Prior to January 1, 2014, the
			 maximum amount of qualified low-income community investments made in a
			 qualified active low-income community business, together with all of its
			 affiliates, that may count towards the requirement that a qualified community
			 development entity invest substantially all of the qualified equity investment
			 required by OAR 123-630-0010(7)(b)
			 in qualified active low-income community businesses in this state is $4
			 million, whether made by one or several qualified community development
			 entities.
(e) On or after January
			 1, 2014, the maximum amount of qualified low-income community investments made
			 in a qualified active low-income community business, together with all of its
			 affiliates, that may count towards the requirement that a qualified community
			 development entity invest at least the percentage of the qualified equity
			 investment required by OAR
			 123-630-0010(7)(b)
			 in qualified active low-income community businesses in this state is $8
			 million, whether made by one or several qualified community development
			 entities. Qualified active low-income community businesses that received
			 qualified low-income investments of up to $4 million prior to January 1, 2014,
			 may receive additional qualified low-income investments, up to a total of $8
			 million, on or after January 1, 2014, only if the community development entity
			 first submits a project summary demonstrating that the additional investment
			 complies with the requirements of the applicable statutes and rules.
(f) A qualified equity investment must be
			 made before July 1, 2016. Nothing in this paragraph precludes an entity that
			 makes a qualified equity investment prior to July 1, 2016, from claiming a tax
			 credit relating to that qualified equity investment for each applicable credit
			 allowance date.
(g) No more than
			 40% of the total project costs that are paid for by the qualified low-income
			 community investment may be for working capital, financing and other fees and
			 other soft costs.