Current through 2024-38, September 18, 2024
1. A CDE
that has been awarded tax credit allocation authority pursuant to Section
4 that has not submitted Certification
Applications as to all of its allocation authority must file an annual report
with the Authority on April 30, 2013 for the preceding calendar year, and each
succeeding April 30 for the preceding calendar year, until all of its awarded
allocation has been certified or has lapsed, in each case with the Annual
Report Fee, providing the following information:
A. A summary of activity of the CDE in
seeking qualified equity investments that have not been certified;
B. The total amount of investment received by
the CDE to date that have not been certified, including investments for which
it intends to seek certification;
C. To the extent investments have been
received and not certified, the qualified active low-income community business
in which such investments are intended to be re-invested by the CDE;
D. To the extent investments have been
received but not certified, the proposed use or uses of the proceeds by the
qualified active low-income community business if so re-invested by the
CDE;
E. To the extent investments
have been received and not certified, the low-income community or communities
in which the proceeds will be expended by the qualified active low-income
community business if so re-invested by the CDE;
F. The date by which the CDE intends to file
its Certification Applications;
2. A CDE that has received Certification as
to some or all of its tax credit allocation authority pursuant to Section
4 must file an annual report with the Authority
commencing April 30 of the year following the calendar year it receives its
first Certification, and on each April 30 thereafter through the April 30 of
the year following the seventh anniversary date of the final Certification,
with the Annual Report Fee, providing the following information:
A. A summary of activity of the CDE in
completing the expenditure of at least 85 percent of its qualified equity
investments in qualified low-income community investments within twenty four
months of receipt, including: the amounts invested to date; the qualified
active low-income community businesses in which the such investments have been
made by the CDE; the use or uses of the proceeds of such investments by the
qualified active low-income community businesses; the low-income community or
communities in which the proceeds were expended by the qualified active
low-income community; and the estimated number of jobs created or retained by
the qualified active low-income community businesses on account of such
investments;
B. Evidence of the
maintenance of at least 85 percent of the qualified equity investments as
qualified low-income community investments, including any repayment of
qualified low-income community equity investments and subsequent reinvestment
in other qualified low-income community investments;
C. Whether and to what extent any federal new
markets tax credits have been subject to recapture for qualified equity
investments certified by the Authority;
D. Whether and to what extent any principal
repayments or redemptions have been initiated by the CDE of any qualified
equity investments certified by the Authority.
3. As a condition precedent to certification
by the Authority of an investment as a qualified equity investment, the
Applicant will enter into an agreement with the Authority providing as follows:
A. The CDE will use at least 85 percent of
the qualified equity investment to make a qualified low-income community
investment in a qualified active low-income community business in this State
within twenty-four months of its receipt of the qualified equity investment,
and maintain such level of qualified low-income community investments in
qualified active low-income community businesses in the State until the last
credit allowance date for such credits, and notify the Authority and Maine
Revenue Services within thirty days of any failure to comply with this
requirement;
B. The CDE will notify
the Authority and Maine Revenue Services within thirty days of the CDE
receiving notice that any amount of federal tax credits available for the
qualified equity investments for which credits under this Program are certified
are being recaptured under Code section 45D, including the amount of recapture
and the reasons therefore;
C. The
CDE will notify the Authority and Maine Revenue Services within thirty days of
its having made a principal repayment or full or partial redemption as to a
qualified equity investment that has been certified by the Authority as
eligible for federal tax credits prior to the date that is the final credit
allowance date, including the amount of such repayment or redemption.
4. If the CDE violates the
agreement referenced in Section
6(3) of this Rule, or
otherwise is in violation of provisions of
10 M.R.S.A.
§1100-Z;
36 M.R.S.A.
§5219-GG; or this Rule, or if an event
described in Section
6(2)(B), (C) or (D)
of this Rule has occurred, the tax credits related to the qualified equity
investment certified by the Authority shall be subject to recapture pursuant to
36 M.R.S.A.
§5219-GG.
5. The Authority may share any information it
obtains in any Allocation Application, Certification Application, or Annual
Report with the Commissioner and/or Maine Revenue Services, and in any event
may notify the Commissioner and/or Maine Revenue Services if it becomes aware
of any event or circumstance that may warrant recapture.
