Nac: Chapter 231A - Nevada New Markets Jobs Act

Link to law: http://www.leg.state.nv.us/nac/NAC-231A.html
Published: 2015

[Rev. 10/1/2014 3:03:35 PM]

[NAC-231A Revised Date: 9-14]

CHAPTER 231A - NEVADA NEW MARKETS JOBS ACT

231A.010         Exercise or performance of duties

and responsibilities assigned to Director and Department.

231A.020         Application for designation as

qualified equity investment: Required provisions.

231A.030         Notice to Department of change of

names of entities eligible to use tax credits.

231A.040         Additional information to be

provided to Department with evidence of receipt of cash investment.

231A.050         Approval required to accept

qualified low-income community investments from more than one qualified

community development entity.

231A.060         Notice to Department of qualified

low-income community investments.

231A.070         Recapture: “Cash proceeds” and

“proceeds” interpreted.

231A.080         Recapture: Amount of tax credits

Department will recapture.

231A.090         Recapture: Notice to Department.

231A.100         Recapture: Provisions of subsection

3 of NRS 231A.250 interpreted.

231A.110         Recapture: Provisions of subsection

4 of NRS 231A.250 interpreted.

231A.120         Submission of annual report by

qualified community development entity.

231A.130         Address of Director.

 

 

 

      NAC 231A.010  Exercise or performance of duties and responsibilities assigned

to Director and Department. (NRS 231A.150, 232.520)

     1.  Any authority granted to the Director and

any duty or responsibility assigned to the Director by any provision of this

chapter or chapter 231A of NRS,

including, without limitation, pursuant to subsection 2, may be exercised or

performed by any employee of the Department who is designated by the Director

for that purpose.

     2.  Any authority granted to the Department

and any duty or responsibility assigned to the Department by any provision of

this chapter or chapter 231A of NRS

may be exercised or performed by the Director.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.020  Application for designation as qualified equity investment:

Required provisions. (NRS 231A.150)  In

addition to the requirements set forth in subsection 1 of NRS 231A.230, an application

submitted pursuant to that subsection must:

     1.  Be in writing;

     2.  Be made on a form provided for that

purpose by the Department;

     3.  Include, with regard to the qualified

community development entity which is submitting the application:

     (a) The name of the qualified community development

entity;

     (b) Any name under which the qualified community

development entity does or expects to do business;

     (c) The federal employer identification number of

the qualified community development entity;

     (d) The state in which the qualified community

development entity is incorporated or otherwise organized, if applicable;

     (e) The date upon which the qualified community

development entity was incorporated or otherwise organized, if applicable;

     (f) The mailing address of the qualified community

development entity;

     (g) The county in which the mailing address of the

qualified community development entity is located;

     (h) The physical address of the qualified community

development entity;

     (i) Every telephone number, facsimile number,

electronic mail address and Internet address of the qualified community development

entity; and

     (j) The name and title of the natural person who is

the primary contact for the qualified community development entity; and

     4.  Include any other information required by

the Department.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

REVISER’S NOTE.

      The regulation of the Director of the Department of

Business and Industry filed with the Secretary of State on June 23, 2014 (LCB

File No. R103-13), which created this section, contains the following

provisions not included in NAC:

      Sec. 15.  1.  The

Department of Business and Industry shall begin accepting applications for

certification of qualified equity investments on October 1, 2013.

      2.  An application for certification of a

qualified equity investment which is received by the Department before October

1, 2013, shall be deemed to have been received by the Department on October 1,

2013.

      3.  All applications for certification of

qualified equity investments which are received by the Department on October 1,

2013, or which are deemed to have been received by the Department on October 1,

2013, pursuant to subsection 2, shall be deemed to have been received on the

same day for the purposes of subsection 4 of NRS 231A.230.

 

      NAC 231A.030  Notice to Department of change of names of entities eligible to

use tax credits. (NRS 231A.150)  For the

purposes of subsection 3 of NRS

231A.230, if the names of the entities that are eligible to use the tax

credits change as the result of a transfer of a qualified equity investment or

an allocation pursuant to NRS

231A.210, the qualified community development entity shall notify the

Department of the change not later than 30 days after the date of the transfer

or allocation, as applicable.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.040  Additional information to be provided to Department with evidence

of receipt of cash investment. (NRS 231A.150)  A

qualified community development entity or transferee pursuant to subsection 6

of NRS 231A.230 which provides

to the Department, in accordance with subsection 7 of NRS 231A.230, evidence of the

receipt of a cash investment must include with the evidence provided to the

Department:

     1.  Identifying information for any entity

which will use the tax credits earned as a result of the issuance of the

qualified equity investment, including, without limitation, any information

previously submitted in accordance with paragraph (e) of subsection 1 of NRS 231A.230;

     2.  Notification of any change to the names

of the entities which are eligible to use the tax credits as required pursuant

to subsection 3 of NRS 231A.230

and NAC 231A.030; and

     3.  Any other information required by the

Department.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.050  Approval required to accept qualified low-income community

investments from more than one qualified community development entity. (NRS 231A.150)

     1.  A qualified active low-income community

business shall not accept qualified low-income community investments from more

than one qualified community development entity unless the qualified active

low-income community business first obtains approval from the Department.

     2.  To request approval from the Department

for the purposes of subsection 1, a qualified active low-income community

business must submit to the Department at the address set forth in NAC 231A.130 a written request for approval on a form

prescribed by the Department.

     3.  The Department will grant or deny a

written request for approval submitted in accordance with subsection 2 not

later than 21 calendar days after the date on which the Department receives the

written request. If the Department does not grant or deny the written request

within 21 calendar days after the Department receives the written request, the

request shall be deemed approved.

     4.  The Department will approve a written

request pursuant to subsection 3 unless the Department determines that it is in

the best interests of this State to deny the written request.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.060  Notice to Department of qualified low-income community

investments. (NRS

231A.150)

     1.  Not later than 30 days after the date on

which a qualified community development entity makes a qualified low-income

community investment, the qualified community development entity shall notify

the Department of the qualified low-income community investment.

     2.  Not later than 30 days after the date on

which a qualified community development entity makes a qualified low-income

community investment which causes 85 percent or more of the amount of a

qualified equity investment regarding which the qualified community development

entity has certified qualified equity investment authority to have been

invested in qualified low-income community investments in this State, in

accordance with the requirements of subsection 3 of NRS 231A.250 as interpreted by

the Department pursuant to NAC 231A.100, the

qualified community development entity shall notify the Department that 85

percent or more of the applicable amount of the qualified equity investment has

been invested in qualified low-income community investments in this State.

     3.  A notification made in accordance with

this section must include any other information required by the Department.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.070  Recapture: “Cash proceeds” and “proceeds” interpreted. (NRS 231A.150)  For the

purposes of NRS 231A.250, the

Department will interpret the terms:

     1.  “Cash proceeds,” as used in subsection 4

of NRS 231A.250; and

     2.  “Proceeds,” as used in paragraph (b) of

subsection 3 of NRS 231A.250,

Ê to have the

meaning ascribed to “purchase price” in NRS 231A.100.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.080  Recapture: Amount of tax credits Department will recapture. (NRS 231A.150)  For the

purposes of NRS 231A.250, if a

qualified community development entity transfers, pursuant to subsection 6 of NRS 231A.230, all or a portion of

its certified qualified equity investment authority regarding a qualified

equity investment to another qualified community development entity, and:

     1.  The transferee causes a recapture of tax

credits pursuant to NRS 231A.250,

the Department will recapture only those tax credits relating to the portion of

the qualified equity investment regarding which the transferee received

certified qualified equity investment authority.

     2.  The transferor causes a recapture of tax

credits pursuant to NRS 231A.250,

the Department will recapture only those tax credits relating to the portion of

the qualified equity investment regarding which the transferor retained

certified qualified equity investment authority.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.090  Recapture: Notice to Department.

(NRS 231A.150)

     1.  For the purposes of subsection 1 of NRS 231A.250, a qualified

community development entity which has certified qualified equity investment

authority pursuant to NRS 231A.230

regarding any portion of a qualified equity investment shall notify the

Department not later than 30 days after the qualified community development

entity:

     (a) Learns of the recapture under section 45D of

the Internal Revenue Code of 1986, 26 U.S.C. § 45D, of any amount of a federal

tax credit relating to the portion of the qualified equity investment regarding

which the qualified community development entity has certified qualified equity

investment authority; or

     (b) Experiences a recapture event as described in

section 45D of the Internal Revenue Code of 1986, 26 U.S.C. § 45D.

     2.  The provisions of this section apply to a

qualified community development entity without regard to whether the qualified

community development entity received its certified qualified equity investment

authority regarding a portion of a qualified equity investment:

     (a) By applying for and receiving certification

pursuant to NRS 231A.230 for

the qualified equity investment; or

     (b) Through a transfer pursuant to subsection 6 of NRS 231A.230 from another

qualified community development entity.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.100  Recapture: Provisions of subsection 3 of NRS 231A.250 interpreted. (NRS 231A.150)  For the

purposes of subsection 3 of NRS

231A.250, the Department will interpret the requirements of that subsection

to apply only to the amount of the qualified equity investment regarding which

a qualified community development entity has certified qualified equity

investment authority. In accordance with the requirements of subsection 3 of NRS 231A.250 as interpreted by

the Department pursuant to this section:

     1.  If a qualified community development

entity applies for and receives certification pursuant to NRS 231A.230 for a qualified

equity investment and the qualified community development entity does not

transfer, pursuant to subsection 6 of NRS 231A.230, any portion of its

certified qualified equity investment authority regarding the qualified equity

investment, the qualified community development entity must invest and maintain

invested as required by subsection 3 of NRS 231A.250 an amount equal to

85 percent or more of the original amount of the qualified equity investment

which is certified by the Department pursuant to subsection 3 of NRS 231A.230 and for which cash

is received in accordance with subsection 7 of NRS 231A.230.

     2.  If a qualified community development

entity transfers, pursuant to subsection 6 of NRS 231A.230, all or a portion of

its certified qualified equity investment authority regarding a qualified

equity investment to another qualified community development entity:

     (a) The transferee must invest and maintain

invested as required by subsection 3 of NRS 231A.250 an amount equal to

85 percent or more of the portion of the qualified equity investment regarding

which the transferee received certified qualified equity investment authority

and for which cash is received in accordance with subsection 7 of NRS 231A.230.

     (b) The transferor must invest and maintain

invested as required by subsection 3 of NRS 231A.250 an amount equal to

85 percent or more of the portion of the qualified equity investment regarding

which the transferor retained certified qualified equity investment authority

and for which cash is received in accordance with subsection 7 of NRS 231A.230.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.110  Recapture: Provisions of subsection 4 of NRS 231A.250 interpreted. (NRS 231A.150)  For the

purposes of subsection 4 of NRS

231A.250, the Department will interpret the requirements of that subsection

to apply only to the original amount of a qualified equity investment which is

certified by the Department pursuant to subsection 3 of NRS 231A.230 and for which cash

is received in accordance with subsection 7 of NRS 231A.230. In accordance with

the requirements of subsection 4 of NRS

231A.250 as interpreted by the Department pursuant to this section:

     1.  Up to 25 percent of the original amount

of the qualified equity investment may be invested in any one qualified active

low-income community business without regard to whether the qualified community

development entity which applied for and received certification pursuant to NRS 231A.230 for the qualified

equity investment has transferred to another qualified community development

entity any portion of the certified qualified equity investment authority

regarding that qualified equity investment; and

     2.  A qualified community development entity

which, as referenced in subsection 1, receives a portion of the certified

qualified equity investment authority regarding a qualified equity investment

may invest in any one qualified active low-income community business up to 100

percent of the amount of the qualified equity investment over which the

qualified community development entity received authority if the amount of the

investment, when combined with all other investments in the qualified active

low-income community business which are directly or indirectly drawn from the

original qualified equity investment, does not exceed 25 percent of the

original amount of the qualified equity investment as certified by the

Department pursuant to subsection 3 of NRS 231A.230 and for which cash

was received in accordance with subsection 7 of NRS 231A.230.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.120  Submission of annual report by qualified community development

entity. (NRS

231A.150)

     1.  Except as otherwise provided in this

subsection, with regard to each qualified equity investment for which a

qualified community development entity receives certification from the

Department pursuant to NRS 231A.230,

the qualified community development entity shall submit to the Director an

annual report for each of the 6 years immediately following the date on which

the qualified equity investment was initially made. If the qualified community

development entity transfers, pursuant to subsection 6 of NRS 231A.230, all or a portion of

its certified qualified equity investment authority regarding the qualified

equity investment to another qualified community development entity:

     (a) The transferee shall submit to the Director the

annual report for the portion of the qualified equity investment regarding

which the transferee receives certified qualified equity investment authority;

and

     (b) The transferor shall submit to the Director the

annual report for the portion of the qualified equity investment regarding

which the transferor retains certified qualified equity investment authority.

     2.  The annual report required by subsection

1 must be submitted:

     (a) Not earlier than the annual anniversary date at

the end of the year to which the annual report relates and not later than 5

business days after that annual anniversary date; and

     (b) In writing and in an electronic format

acceptable to the Director.

     3.  The first annual report required by

subsection 1 for a qualified equity investment must:

     (a) Provide evidence satisfactory to the Director

that 85 percent or more of the amount of the qualified equity investment

regarding which the qualified community development entity has certified

qualified equity investment authority has been invested in qualified low-income

community investments in this State in accordance with the requirements of

subsection 3 of NRS 231A.250

as interpreted by the Department pursuant to NAC

231A.100;

     (b) Identify any business owned by a person who is

a member of a racial or ethnic minority group into which the qualified

community development entity made a qualified low-income community investment

relating to the qualified equity investment;

     (c) Include a description of all organizations,

agencies and other groups with which the qualified community development entity

collaborated in identifying or selecting a qualified active low-income

community business into which to make a qualified low-income community

investment;

     (d) For each qualified low-income community

investment relating to the qualified equity investment:

          (1) Include a bank statement of the qualified

community development entity which clearly shows that the qualified low-income

community investment was made;

          (2) Provide evidence satisfactory to the

Director, including, without limitation, a certified statement from the

president of the business or another similar person, that the business into

which the qualified low-income community investment was made was a qualified

active low-income community business at the time the qualified low-income

community investment was made;

          (3) With regard to the business identified in

subparagraph (2), indicate:

               (I) The name of the business;

               (II) The physical address of the

business;

               (III) The county in which the physical

address of the business is located;

               (IV) The federal employer identification

number of the business;

               (V) The standard industrial

classification of the business; and

               (VI) The amount of the qualified

low-income community investment which was made in the business; and

          (4) Include a projection of the total number

of jobs which will be created because of the qualified low-income community

investment and the total number of jobs which will be retained because of the

qualified low-income community investment; and

     (e) Include any other information required by the

Director.

     4.  Except as otherwise provided in

subsection 6, the second through sixth annual reports required by subsection 1

for a qualified equity investment must:

     (a) Identify any business owned by a person who is

a member of a racial or ethnic minority group into which the qualified

community development entity made a qualified low-income community investment

relating to the qualified equity investment;

     (b) Identify any organization, agency or other

group relating to a racial or ethnic minority group with which the qualified

community development entity worked in making a qualified low-income community

investment relating to the qualified equity investment;

     (c) For each qualified low-income community

investment relating to the qualified equity investment, include the current

total number of jobs created because of the qualified low-income community

investment and the current total number of jobs retained because of the

qualified low-income community investment;

     (d) With regard to the numbers of jobs reported

pursuant to paragraph (c), indicate the current total number of jobs created

and the current total number of jobs retained for persons who are members of a

racial or ethnic minority group;

     (e) With regard to the jobs reported pursuant to

paragraph (c), indicate the average salary;

     (f) Identify the current cost basis of the

qualified equity investment; and

     (g) Include any other information required by the

Director.

     5.  In an annual report required by

subsection 1 for a qualified equity investment, the qualified community

development entity may include any information in addition to the information

required pursuant to subsection 3 or 4 to demonstrate the effectiveness of a

qualified low-income community investment relating to the qualified equity

investment.

     6.  In the second through sixth annual

reports required by subsection 1 for a qualified equity investment, the

qualified community development entity shall not include information relating to

a qualified low-income community investment which has been sold by, returned to

or repaid to the qualified community development entity.

     7.  For the purposes of subparagraph (4) of

paragraph (d) of subsection 3:

     (a) A job may be projected to be created if the job

is reasonably anticipated by the qualified community development entity to meet

the definition of “job created” beginning at any time on or before the last

credit allowance date for the applicable qualified equity investment and

continuing for 26 or more consecutive weeks, during which time the hours worked

in the position are reasonably anticipated to average 30 or more hours per

week.

     (b) A job may be projected to be retained if the

job is reasonably anticipated by the qualified community development entity:

          (1) To meet the definition of “job retained”

at any time on or before the last credit allowance date for the applicable

qualified equity investment; and

          (2) To be filled by an employee who meets the

requirements of subparagraphs (1), (2) and (3) of paragraph (a) of subsection 8

beginning when the job meets the definition of “job retained” and continuing

for 26 or more consecutive weeks, during which time the hours worked in the

position are reasonably anticipated to average 30 or more hours per week.

     8.  As used in this section:

     (a) “Job created” means, as represented by a

qualified active low-income community business located within this State, a

new, full-time and permanent position at the qualified active low-income

community business which is filled by one or more natural persons, each of

whom:

          (1) Is a resident of this State and is

expected by the qualified community development entity to be a resident of this

State during the entire year for which the applicable annual report is made;

          (2) Works and, after being hired, continues to

work for the remainder of the year for which the applicable annual report is

made:

               (I) On the premises of the qualified

active low-income community business located within this State; or

               (II) Off the premises of the qualified

active low-income community business only if the position is a qualified

off-premises position; and

          (3) Is employed by the qualified active

low-income community business:

               (I) Directly; or

               (II) As a contractual employee only if

the qualified active low-income community business offers benefits to the

contractual employee which are comparable to the benefits the business offers

to the persons it employs directly.

Ê The term also

includes a new position related to a qualified active low-income community

business which is filled by a self-employed contractor if, during the year for

which the applicable annual report is made, the self-employed contractor pays

taxes to this State and works not less than 1,040 hours for the qualified

active low-income community business performing professional services for the

business.

     (b) “Job retained” means, as represented by a

qualified active low-income community business located within this State, a

position filled by an employee of the qualified active low-income community

business if the employee meets the requirements of subparagraphs (1), (2) and

(3) of paragraph (a), the employee was hired by the business to fill the

position before the business received the applicable qualified low-income

community investment, and:

          (1) The qualified active low-income community

business was in existence and located in this State for not less than 2 years

immediately preceding the date on which the business received the applicable

qualified low-income community investment, and:

               (I) The qualified active low-income

community business lost 20 percent or more of its net worth during either the

1-year period or the 2-year period immediately preceding the date on which the

business received the applicable qualified low-income community investment; or

               (II) The president of the qualified

active low-income community business or another similar person certifies that

the position would not have been retained but for the applicable qualified

low-income community investment; or

          (2) The position would have been transferred

to a location outside of this State but for the applicable qualified low-income

community investment, as evidenced either by a certified statement from the

president of the qualified active low-income community business or another

similar person or by a written and accepted offer of relocation assistance from

an economic development agency from another state.

     (c) “Qualified off-premises position” means a

position:

          (1) Which has been filled for 26 or more

consecutive weeks;

          (2) For which, during the time the position

has been filled, the hours worked in the position have averaged 30 or more

hours per week; and

          (3) For which it is anticipated by the

qualified community development entity that the hours worked in the position

will continue to average 30 or more hours per week for each tax year of the

qualified active low-income community business which occurs, in whole or in

part, on or before the last credit allowance date for the applicable qualified

equity investment.

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)

      NAC 231A.130  Address of Director. (NRS 231A.150)  A person

may obtain clarification of or information concerning the requirements of this

chapter or chapter 231A of NRS and

any procedure for submitting applications, requests or reports to the

Department or the Director pursuant to this chapter or chapter 231A of NRS by sending a

written request for the clarification or information to the Director at the

following address:

 

Attn: Director

Department of Business and Industry

555 East Washington Avenue, Suite

4900

Las Vegas, Nevada 89101-1075

 

     (Added to NAC by Dep’t of Business & Industry by

R103-13, eff. 6-23-2014)
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