122:22-1-03 Qualified active low-income community business.

(A) Within sixty days after closing each qualified low-income community investment made in this state for which a new market tax credit is to be allowed, the state allocatee shall notify the director of such investment and certify to the director that the investment has been made in a qualified active low-income community business as that term is defined in division (A)(4) of section 5725.33(A)(4) of the Revised Code. The notice shall be in a form approved by the director and shall contain the amount paid to the state allocatee for the qualified equity investment at its original issue.

(B) The state allocatee shall include with the certification described in paragraph (A) of this rule supporting documentation evidencing that the qualified active low-income community business does not derive or project to derive fifteen per cent or more of its annual revenue from the rental or sale of real property or that the exception provided in division (A)(4) of section 5725.33 of the Revised Code applies. If the qualified active low-income community business is a special purpose entity as described in division (A)(4) of section 5725.33 of the Revised Code, the supporting documentation must include (1) organizational documents for the business showing that it was formed solely for the purpose of renting, either directly or indirectly, or selling real property back to the principal user; (2) evidence of ownership of the special purpose entity and that the principal user principally owns the special purpose entity; (3) a lease or rental agreement evidencing that the principal owner of the special purpose entity is a principal user of the subject real property; and (4) evidence that the principal user does not derive fifteen per cent or more of its annual revenue from the rental or sale of real property.

(C) For purposes of determining whether a business is a qualified active low-income community business as defined in section 5725.33 of the Revised Code, "annual revenue" will be applied consistently to refer to gross annual revenue of the business.

(D) The state allocatee may request from the director a written determination whether or not, based on the certification and supporting documentation provided by the state allocatee pursuant to this rule, a business is a qualified active low-income community business as that term is defined in division (A)(4) of section 5725.33 of the Revised Code. Such determination shall be final provided that the certification of the state allocatee on which the director relies and the supporting documentation which accompanies the certification is true, correct, and complete.

Effective: 11/29/2010
R.C. 119.032 review dates: 11/29/2015
Promulgated Under: 119.03
Statutory Authority: 5725.33
Rule Amplifies: 5725.33 , 5729.16 , 5733.58