Current through Register Vol. 39, No. 6, September 16, 2024
(a) The North Carolina Tax Reform Allocation
Committee (the "Committee") shall allocate Qualified Energy Conservation Bond
("QECB") capacity to entities eligible to issue the bonds under 26 U.S.C.S. 54D
as follows:
(1) To "large local governments,"
as the term is used in 26 U.S.C.S. 54D(e)(2) in the amounts and manner as
directed by the United States Internal Revenue Service ("IRS") in 26 U.S.C.S.
54D and all relevant implementing notices provided by the IRS (including IRS
Notice 2009-29), as modified, amended or supplemented (as listed at
http://www.irs.gov/irb/2009-16irb/ar10.html.For purposes of calculating the
populations of local governments to determine which constitutes a "large local
government," the Committee shall use population estimates as of July 1, 2007,
as directed by the IRS (as listed at
http://www.census.gov/popest/data/counties/totals/2009/CO-EST2009-01.htmland
http://www.census.gov/popest/data/cities/totals/2009/SUB-EST2009-4.html.
(2) To "Indian tribal governments," as the
term is used in 26 U.S.C.S. 54D(h) in the amounts as directed by the IRS in 26
U.S.C.S. 54D and relevant implementing notices provided by the IRS (including
IRS Notice 2009-29), as modified, amended or supplemented (as listed at
http://www.irs.gov/irb/2009-16irb/ar10.html.
(b) Following the allocations described in
Paragraph (a) of this Rule, the Committee shall allocate the remaining QECB
capacity to other issuers. The allocation shall be made by the Committee upon
completed application by an issuer, and after consideration of the following
factors:
(1) The ability of the State to
ensure that at least 70 percent of the State's allocation is used for
government projects, and no more than 30 percent for projects considered QECB
private activity bonds under IRS rules, regulations and guidelines;
(2) The extent to which the project
constitutes an eligible conservation purpose under 26 U.S.C.S. 54D and all
implementing notices provided by the IRS (including IRS Notice 2009-29), as may
be modified, amended or supplemented;
(3) The extent to which the project
demonstrates the potential to conserve energy;
(4) The extent to which the project supports
the development or implementation of energy conservation technology;
(5) The extent to which the project uses
renewable resources to produce energy;
(6) The number of citizens benefiting from
the project;
(7) The estimated
number of jobs to be produced by the projects (for private activity
allocations) and the amount of QECB authority per job produced;
(8) The readiness of the project to
proceed;
(9) The certainty of the
issuer using the allocation within the estimated timelines;
(10) The amount of other public and private
funding leveraged by the QECB allocation;
(11) The amount of local community support
for the project;
(12) Whether the
unit of local government is in competition with another state for project
benefits such as jobs and tax base;
(13) Whether the availability of the
allocation is a crucial part of attracting a new company or keeping an existing
company in place;
(14) Whether the
requested allocation will benefit a project for which an eligible issuer is
already issuing QECBs;
(15) The
ability of the unit of local government or company benefiting from the QECB to
obtain financing and close the issue in a timely manner, including
demonstration of a commitment from a bank or other financial institution to
purchase or underwrite the QECBs;
(16) The total amount of capacity available
to the Committee for allocation in relation to the total number of pending
requests for allocation;
(17) The
tier status of the county in which the project is to be located, as defined in
G.S.
143B-437.08; and
(18) The geographic location of the project
in light of the location of other projects benefitting from QECB
capacity.
(c) If so
required by G.S. Chapter 159 or
G.S.
160A-20, local governments shall coordinate
issuance of QECBs with and through the North Carolina Local Government
Commission (the "LGC") in the Office of the North Carolina State Treasurer and
shall obtain approval from the LGC for QECB issuance.
(d) Entities allocated QECB capacity by the
Committee and entities who issue QECBs shall ensure compliance with all federal
and state laws, rules, regulations and requirements applicable to the
allocation or issue.
(e) Entities
receiving an allocation under Paragraph (a) of this Rule ("large local
governments" and "Indian tribal governments") may waive or reallocate to the
State of North Carolina all or a portion of their allocation. Upon the State's
receipt of any additional QECB capacity through any waiver or reallocation, the
Committee shall allocate the capacity to eligible issuers in the manner
described in Paragraph (b) of this Rule.
(f) To ensure timely use of any QECB
allocation, the Committee shall attach to an allocation of capacity made under
Paragraph (b) of this Rule contingencies relating to a time deadline for
issuance of the QECBs pursuant to the allocated capacity and contingencies
limiting the use of the allocated QECB capacity for public or private activity
bonds.
Authority
G.S.
143-433.6(d);
143-433.8;
143-433.9(a);
150B-21.1B; S.L. 2009-140; S.L.
2009-475;
Emergency Adoption Eff. July 15, 2011;
Temporary Adoption Eff. September 8, 2011;
Eff. July 1,
2012;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. September 6,
2016.
