94- 457 C.M.R. ch. 325, § 6

Current through 2024-51, December 18, 2024

Section 457-325-6 - REPORTING REQUIREMENTS; RECAPTURE

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.

94- 457 C.M.R. ch. 325, § 6