122:24-1-09 Verification of small business investment certificates.

(A) Annually on a date determined by the director and again upon the completion of the holding period for a qualifying investment that was given an investOhio transaction ID, the eligible investor shall supply to the director evidence of its continued ownership interest in the small business enterprise that was a party to the qualifying investment.

(B) Annually on a date determined by the director and again upon the completion of the holding period for a qualifying investment that was given an investOhio transaction ID, the small business enterprise shall supply to the director evidence of its continuous ownership of the property it acquired or employment positions it funded pursuant to division (A)(1)(c) of section 122.86 of the Revised Code.

(C) An Eligible Investor shall not claim a tax credit pursuant to section 5747.81 of the Revised Code if it fails to retain an ownership interest greater than or equal to that which it acquired as a result of the investment of money for the entirety of the holding period.

(D) An eligible investor shall not claim a tax credit pursuant to section 5747.81 of the Revised Code if the small business enterprise fails to retain all of the property or employment positions for which allowed expenditures under paragraph (B) of this rule and consistent with division (A)(1)(c) of section 122.86 of the Revised Code.

(E) The director shall annually, or as often as the director determines necessary, notify the tax commissioner of the following:

(1) A registry of all registered small business enterprises; and

(2) A registry of all small business investment certificates together with their investOhio transaction IDs; and

(3) All known investOhio transaction IDs in which violations of paragraph (C) or (D) of this rule have occurred and consequences of those violations.

(F) In the event that an eligible investor is a pass-through entity in which only some of the participating owners or members have held their equity or other ownership interests in the small business enterprise for the applicable holding period, the director shall disqualify only those owners or members who failed to hold their interests for applicable holding period. The remaining owners or members shall be entitled to claim tax credits equal to their respective qualifying investments.

(G) When the director disqualifies a small business investment certificate, or any portion thereof, the director shall restore that amount to the investOhio program and follow the procedures set forth in paragraph (E) of rule 122:24-1-06 of the Administrative Code to continue to award tax credits to investOhio transaction IDs that have not received either their full allocation of tax credits or any tax credit. The director shall cease reinstatement under this division upon the end of each state fiscal biennium.

Effective: 03/29/2012
R.C. 119.032 review dates: 03/29/2017
Promulgated Under: 119.03
Statutory Authority: 122.86(F)
Rule Amplifies: 122.86 , 5747.81
Prior Effective Dates: 11/8/2011 (Emer)