Ala. Admin. Code r. 460-X-23-.07

Current through Register Vol. 42, No. 12, September 30, 2024

Section 460-X-23-.07 - Tax Credit Allocation Reservation

(1) Once the Commission has determined that Parts A and B of the Application are complete, the Commission will issue a Tax Credit Allocation Reservation in the amount based on the estimated qualified rehabilitation expenditures provided by the Applicant on the Part B of the Application. Tax Credit Allocation Reservations will be issued in the order that its request is listed on the Reservation Priority List.

(2)Supplemental Tax Credit Allocation Reservation. In the event the amount of qualified rehabilitation expenditures incurred by the Owner exceeds the amount of qualified rehabilitation expenditures estimated on Part B of the Application for the purpose of establishing the Tax Credit Allocation Reservation, the Applicant may, at any time after Part B of the Application has been approved for compliance with the Standards but before the issuance of a Tax Credit Certificate, apply to the Commission for a reservation of a supplemental Tax Credit Application Reservation in an amount equal to the excess. Applications for a supplemental Tax Credit Application Reservation shall be made on a form prescribed and available from the Commission at no cost and shall be issued subject to availability based on the Aggregate Tax Credit Allocation Amount and the placement on the Reservation Priority List. For the purpose of placement on the Reservation Priority List, the request will be considered a new Application and will added to the next available position on the list. Applicants who receive a Supplemental Tax Credit Allocation Reservation will be invoiced for a fee in the amount of one percent (1%) of the amount of the excess qualified rehabilitation expenditures unless the Applicant has paid the maximum ten thousand dollar ($10,000.00) fee for the same Project.

(3)Commission Tracking. The Commission shall track the cumulative amount of Tax Credit Allocation Reservations and will discontinue issuing Tax Credit Allocation Reservations once the total has reached the Aggregate Tax Credit Allocation Amount. When the Aggregate Tax Credit Allocation Amount has been reached, no further Tax Credit Allocation Reservations will be made until: 1) additional amounts are returned through the rescission of Tax Credit Allocation Reservations; or 2) a new Aggregate Tax Credit Allocation Amount becomes available under the terms of these regulations. If an Applicant has applied for a Tax Credit Allocation Reservation that exceeds the remaining allocation available under Aggregate Tax Credit Allocation Amount, the Commission shall issue a Tax Credit Allocation Reservation in the amount of the available partial allocation (the "Partial Allocation"), and the amount requested by the Application that exceeds the Partial Allocation (the "Excess Allocation") shall remain in the first position on the Reservation Priority List until additional amounts are available pursuant to the previous sentence, at which time the Commission shall issue a Tax Credit Allocation Reservation in the amount of the Excess Allocation.

(4)Aggregate Tax Credit Allocation Amount Limits. The availability of Tax Credit Allocation Reservations is limited to the Aggregate Tax Credit Allocation Amount per tax year beginning on May 15, 2013 and extending through the Expiration of tax credits as defined in Section 460-X-23.13. If all of the Aggregate Tax Credit Allocation Amount for any tax year is not requested and reserved, any unreserved tax credit allocations may be utilized by the Commission in awarding tax credits in subsequent years. No tax credit claimed for any Qualified Rehabilitation Expenditures may exceed five million dollars ($5,000,000) for all allowable property types except Certified Historic Residential Structures and fifty thousand dollars ($50,000) for Certified Historic Residential Structures. Applications for the reservation of tax credits will be accepted beginning October 1, 2013, but no tax credit may be credited before the taxpayer's return for the taxable year 2014. All Applications under this Program shall be received before May 15, 2016.

(5)Projects Not Likely to Receive a Reservation. The Commission shall notify Applicants in writing of the status for Projects that are not likely to receive a Tax Credit Allocation Reservation because of the Project's place on the Reservation Priority List. Applicants will be notified in writing of any eligibility determination and the Project's place in the priority order. The Applicant will have thirty (30) days to notify the Commission in writing that the Applicant desires to have the Project remain on the Reservation Priority List. If so, the Project will remain on the priority list for up to two years from the date the Application was made. Failure to notify the Commission will result in the Project being removed from the Reservation Priority List. The Applicant may re-apply for the Project, but it will be treated as a new Application.

(6)All Requirements Shall be Met. A Tax Credit Allocation Reservation reserves a credit in the name of the applicant only. However, no actual Certificate of Credit which can be used by the applicant will be issued until all the requirements of the program have been satisfied as certified by the Commission.

(7)Rescission. If a Tax Credit Allocation Reservation is rescinded, its tax credit allocation will be returned to the Aggregate Tax Credit Allocation Amount available. Any Applicant whose Tax Credit Allocation Reservation is rescinded shall be notified in writing of the rescission by the Commission. A new Application may be submitted, but it will be treated as a new Application and will be charged a new Application fee.

(a) If, at any time, the Commission determines that the proposed or ongoing rehabilitation work is not consistent with the Standards, the reservation of tax credits for the Applicant may be rescinded.

(b) If, at any time, the Commission has reason to believe that a Project has become inactive or that it is not likely that it will be able to meet any or all of the requirements of the Program, it shall notify the Applicant by registered or certified mail of the Commission's intent to rescind the Tax Credit Allocation Reservation. If the Applicant fails to respond within thirty (30) calendar days receipt of the notice that the Project is still active, the Commission may rescind the Tax Credit Allocation Reservation.

Ala. Admin. Code r. 460-X-23-.07

New Rule: Filed December 13, 2013; effective December 20, 2013.

Amended by Alabama Administrative Monthly Volume XXXII, Issue No. 12, September 30, 2014, eff. 10/8/2014.

Authors: Chloe Mercer, David Schneider, Jennifer Bailey

Statutory Authority: Act 2013-241; Act 2014-452.