122:22-1-02 Allocation of new markets tax credit authority.  

  • Text Box: ACTION: Original Text Box: DATE: 10/06/2016 10:00 AM

     

     

     

     

     

     

     

     

    NOTICE OF PUBLIC HEARING

     

    A public hearing will be held by the Ohio Development Services Agency on Monday, November 7th, 2016 at 10 a.m. in Conference Room 1920 located at 77 South High St., Columbus, Ohio 43215. The purpose of the hearing is to solicit public comment on the following rules:

    Ohio New Markets Tax Credit

     

    ·         122:22-1-01, titled "Definitions". The following changes are proposed:

    o   Adds a statement similar to the statutory provision which indicates that any undefined terms have the same meaning as in section 45D of the Internal Revenue Code;

    o   Clarifies which sections of the tax code authorize claiming of credits;

    o   Changes "department of development" to "development services agency";

    o   Changes "new market" to "new markets";

    o   Deletes the definition of "principal user" due to a statutory change;

    o   Deletes the definition of "principally owned" due to a statutory change;

    o   Deletes the definition of "qualified  community development entity"  which is

    defined by statute.

    ·         122:22-1-02,  titled  "Allocation  of  new  markets  tax  credit  authority".  The  following

    changes are proposed:

    o   Changes "new market" to "new markets".

    ·         122:22-1-03, titled "Notices and certificates". The following changes are proposed:

    o   The title of the section has been changed to better reflect content;

    o   Adds a requirement to provide notice to ODSA when a qualified equity investment is received by a community development entity;

    o   Clarifies  the  requirement  to  provide  notice  to  ODSA  when  a  community development entity makes a qualified low-income community investment;

    o   Removes the requirement to show proof of compliance with section 5725.33(A)(4) of the Revised Code as a result of statutory changes;

    o   Establishes a procedure for issuing annual tax credit certificates and identifies the information to be included on the certificate.

    ·         122:22-1-04, titled "Annual reporting". The following changes are proposed:

    o   The title of the section has been changed to better reflect content;

    o   Removes the requirement to submit a separate annual report for each allocation agreement;

     

     

     

     

     

     

     

     

    o   Removes the requirement to show the calculation of the adjusted purchase price in accordance with a statutory change;

    o   Deletes section (C), which is being moved to 122:22-1-05;

    o   Changes "new market" to "new markets".

    ·         122:22-1-05, titled "Monitoring and recapture". The following changes are proposed:

    o   Adds a section which was moved from 122:22-1-04;

    o   Changes "new market" to "new markets".

    ·         122:22-1-06, titled "Fees". The rule establishes the fee structure for the program in the Administrative Code as opposed to being set annually based on a schedule of fees approved by the Director. The fee structure itself is not changing from the currently established policy. The fee structure for this voluntary program is set as follows - a $1,500 application fee and a $17,500 servicing fee for applicants who receive an award. Fees for qualified active low-income community business determinations are no longer necessary due to a statutory change.

    ·         122:22-1-07, titled "Delegation of functions".  The following changes are proposed:

    o   Changes "department of development" to "development services agency".

    All interested parties are invited to attend the hearing and present oral and/or written testimony. Written comments may also be submitted to the attention of Lisa Dinger, Compliance and Administration Officer, Ohio Development Services Agency, at 77 South High St., 29th floor, Columbus, Ohio 43215, or by electronic mail at Rule.Comment@development.ohio.gov.