Current through Register Vol. 42, No. 5, February 29, 2024
(1) Decertification
of a CAPCO or one or more of its investment pools may cause the recapture of
premium tax credits previously claimed with respect to program one or program two
and the forfeiture of future premium tax credits to be claimed with respect to
such program by certified investors with respect to the company, as follows:
(a) Except as set forth in subdivision (b) of
subsection (1) of this section, decertification of a CAPCO or a particular
investment pool on or before the third (3rd) anniversary of an investment pool's
allocation date causes the recapture of any premium tax credit previously claimed
with respect to such program and the forfeiture of any future premium tax credit
to be claimed by a certified investor with respect to such investment
pool.
(b) For an investment pool that
meets the requirements for continued certification under Section 6(a)(1) of the
Act and Regulation
281-2-1-.09(1)(a) and
(b) with respect to program one or program two,
as applicable, and subsequently fails to meet the requirements for continued
certification under Section 6(a)(2) of the Act and Regulation
281-2-1-.09(1)(c) and
(d) with respect to the applicable program, any
premium tax credit that has been or will be taken by a certified investor in such
investment pool on or before the third (3rd) anniversary of the investment pool's
allocation date with respect to the applicable program is not subject to
recapture or forfeiture, but any premium tax credit that has been or will be
taken by a certified investor after the third (3rd) anniversary of such
allocation date of the CAPCO with respect to the applicable program is subject to
recapture or forfeiture.
(c) For an
investment pool that has met the requirements for continued certification under
Section 6(a)(l) and (2) of the Act and Regulation
281-2-1-.09(1)
with respect to either program one or program two and is subsequently
decertified, any premium tax credit that has been or will be taken by a certified
investor in such investment pool on or before the fifth (5th) anniversary of the
investment pool's allocation date with respect to the applicable program is not
subject to recapture or forfeiture, but any premium tax credit to be taken after
the fifth (5th) anniversary of such allocation date with respect to the
applicable program is subject to forfeiture only if the investment pool or CAPCO
is decertified on or before the fifth anniversary of such allocation
date.
(d) For a CAPCO that (i) has
invested an amount cumulatively equal to one hundred percent (100%) of the
certified capital of a particular investment pool in qualified investments with
respect to the applicable program, and (ii) in the case of a program two
investment pool, has invested at least $75,000 of such program two investment
pool in no less than five (5) qualified diversity businesses, for a cumulative
investment amount of at least $375,000, any premium tax credit claimed or to be
claimed by a certified investor in such investment pool with respect to the
applicable program is not subject to recapture or forfeiture under the
Act.
(2) The ADO shall
send written notice to the address of each certified investor whose premium tax
credit is subject to recapture or forfeiture, using the address shown on the last
premium tax filing.
(3) In the event
that decertification of a CAPCO or one or more of its investment pools occurs
with respect to a particular program, investor(s) in the CAPCO whose premium tax
credit is subject to recapture of forfeiture shall, within thirty (30) days of
receipt of notice sent by the ADO, submit funds in the amount of all premium tax
credits previously claimed by investor with respect to the applicable program and
subject to recapture, if any, with respect to its investment in the affected
investment pool(s). In the event an investor fails to provide the ADO with such
funds within the thirty (30) day period, a penalty shall be added to such
payment. The penalty shall be equal to the product of (x) the amount of the
payment, (y) the number of days elapsed from the date on which the funds were due
or the date the funds were paid to investors or a CAPCO affiliate and (z) the
prime rate plus three (3) percentage points divided by three hundred sixty (360).
In addition, the certified investor shall pay any legal or other costs relating
to the collection of such payment. Payment shall be in the form of a cashier's
check made payable to the ADO, or a wire transfer to the ADO.
