Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-2-7 - CAPITAL CREDIT REGULATIONS
Section 810-2-7-.02 - Procedure To Notify Department Of Intent To Initiate Project

Universal Citation: AL Admin Code R 810-2-7-.02

Current through Register Vol. 43, No. 02, November 27, 2024

(1) Scope. This regulation applies to the designation of one Investing Company, which is a participant in a Joint Venture with one or more Investing Companies, to act as the sole Reporting Company on behalf of the group of Investing Companies. This regulation also applies to the information required to be provided to the Department by a Reporting Company in order to notify the Department of the intent of the Investing Company or Companies to initiate a Project which will qualify for the Capital Credit.

(2) Definition. Terms defined in Reg. 810-2-7-.01 are incorporated herein by reference for purposes of this regulation, unless the context clearly indicates otherwise.

(3) Purpose. The purpose of this regulation is to provide the procedure by which the Department is notified of the intent by one or more Investing Companies to initiate a Project which will qualify for the Capital Credit and to provide the Department with the information necessary to report to the Legislature and the public the information required by Sections 40-18-190 through 40-18-203, Code of Ala. 1975, as amended.

(4) Procedure. Prior to the date on which the Qualifying Project is Placed in Service, the Investing Company or, where more than one Investing Company is participating in the Qualifying Project, the Reporting Company, shall file with the Department a written statement of intent (FORM INT) to claim the Capital Credit provided by Sections 40-18-190 through 40-18-203, Code of Ala. 1975, as amended. The statement shall contain;

(a) A description of the Qualifying Project;

(b) The predominant type trade or business activity to be conducted at the Qualifying Project;

(c) The Standard Industrial Classification Code for the Qualifying Project;

(d) Type of Project entity (i.e., C corporation, S corporation, partnership, proprietorship, limited liability company, etc.);

(e) The date on which the acquisition, construction, installation or equipping of the Project was commenced or is expected to commence;

(f) The actual costs, or if the actual costs are not known, the estimated Capital Costs of the Project;

(g) Current number of employees;

(h) The number of New Employees to be employed at the Project, the average hourly wage, and the average Total Compensation of each New Employee;

(i) The name and Federal Employer's Identification Number (FEIN) of each Investing Company;

(j) The percentage or ownership in the Project of each Investing Company to become entitled to the Capital Credit;

(k) The name of the Chief Financial Officer, Chief Executive Officer or Person who will sign the tax return on behalf of the Investing or Reporting Company;

(l) An election by the Investing or Reporting Company specifying the method used to determine the income generated by or arising out of the Qualifying Project;

(m) An election by the Investing or Reporting Company specifying methods to be used to allocate the Capital Credit among the shareholders, partners, members, owners or beneficiaries of the Investing Company or Companies entitled to the credit; and

(n) The location, date of closing, and number of full time employees at the time of closure of any facilities within Alabama closed within the past two years.

(5) Once a Qualifying Project is Placed in Service the Investing Company or the Reporting Company must file with the Department a written statement on a form prescribed by the Department (FORM INT-2) to report the actual investment in the Qualifying Project. The statement shall contain:

(a) The Project number assigned to the Qualifying Project by the Department;

(b) A description of the Qualifying Project;

(c) The predominant type trade or business activity conducted at the Qualifying Project;

(d) The Standard Industrial Classification Code for the Qualifying Project;

(e) Type of Project entity (i.e., C corporation, S corporation, partnership, proprietorship, limited liability company, etc.);

(f) The actual Capital Costs of the Project;

(g) The number of New Employees employed at the Project, the average hourly wage, and the average Total Compensation of each New Employee;

(h) The location, date of closing, and number of full time employees at the time of closure of any facility or facilities within Alabama closed within the past two years.

(6) Joint Venture. Where in connection with a Qualifying Project, one or more entities shall enter into a Joint Venture in the form of a limited liability company, partnership, or other form of business entity, the written statement required to be filed by this regulation, shall be filed by the Reporting Company only. Provided, however, the Reporting Company shall file with the written statement its Joint Venture Agreement and the document designating it the Reporting Company for the Qualifying Project. The written statement is not required to be filed by each entity engaged in the Joint Venture.

(7) Change in ownership. If at any time during the period which an Investing Company or Companies is qualified for the Capital Credit, there is a change in the Company or Companies participating in the Qualifying Project, or a change in the ownership regarding the shareholders, partners, members, owners or beneficiaries of the Investing Company or Companies, the Investing or Reporting Company, whichever is applicable, shall file or caused to be filed with Department on a form prescribed by the Department (FORM INT-4), to report the Investing Company or Companies, or the shareholders, partners, members, owners or beneficiaries of the Investing Company or Companies entitled to the credit as a result of the change in ownership.

Author: Verlon Frost, Melody Moncrief, Jeff Taylor

Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(A)(5), 40-18-197, as amended.

Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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