94- 457 C.M.R. ch. 325, § 5

Current through 2024-51, December 18, 2024

Section 457-325-5 - CERTIFICATION OF ELIGIBILITY FOR TAX CREDITS

1. To the extent a CDE obtains equity investments or issues long-term debt securities within two years of the allocation of tax credit authority, the CDE may file a Certification Application seeking that the Authority certify such equity investments or issuance of long-term debt securities as qualified equity investments eligible for tax credits under 10 M.R.S.A. §1100-Z. The Certification Application must contain the following information:

A. Information regarding the proposed use of the proceeds from the equity investments or issuance of long-term debt securities, including: a description of the qualified active low-income community business in which the proceeds will be invested; the proposed use or uses of the proceeds by the qualified active low-income community business; and the low-income community or communities in which the proceeds will be expended;

B. The name and identification number of investor, type of investment (whether debt or equity), purchase price, and nature of consideration received and date of receipt, for each investment for each taxpayer making a equity investment or being issued a long-term debt security;

C. A signed certification indicating that the Certification Application has been executed by an executive officer of the CDE, declaring under the penalty of perjury:

(1) That the Applicant's allocation agreement remains in effect and has not been revoked or canceled by the CDFI Fund; and

(2) That the cash purchase price for the investment has been received; and

(3) That the statements in the original Allocation Application, as well as in the Certification Application, including all accompanying documents and statements, are and remain true, correct and complete as of the date of the Certification Application;

D. A description of the fees to be charged as part of the investment transaction; and

E. The Certification Application Fee.

2. Upon receipt of a completed Certification Application and accompanying information, verification, and fees, the Authority shall determine if the Certification Application should be granted and the investment certified as a qualified equity investment eligible for tax credits under 10 M.R.S.A. §1100-Z. If the Authority finds that the investment should be certified, it shall notify the CDE, the Commissioner, and Maine Revenue Services of its approval, in writing, including the names of persons eligible to claim tax credits, and the respective amounts thereof.

94- 457 C.M.R. ch. 325, § 5