Sec. 05.14.01.07. Procedures for Claiming and Using Tax Credits

A. Certification of Contribution.

(1) In order to claim a tax credit for a contribution under the Act, the business entity or individual shall submit a request for certification through the nonprofit organization on forms provided by the Program, together with any documentation of the contribution as required by the Program.

(2) Each request for certification of a contribution shall contain:

(a) The name of the approved project for which the contribution was made, the project identification number, and the name of the nonprofit organization to which the contribution was made;

(b) A receipt from the nonprofit organization for the contribution; and

(c) In the case of a:

(i) Cash contribution, proof of the amount of the contribution;

(ii) Contribution of new goods, an invoice or receipt provided by the business entity or individual as certification of the contribution's net cost, consistent with Internal Revenue Service Publication 561;

(iii) Nonmonetary contribution not described in §A(2)(c)(ii) of this regulation, a certification by an independent and unrelated third party as to the value of the contribution consistent with Internal Revenue Service Publication 561; or

(iv) Contribution of real property, a properly executed and recorded deed, evidence that the property was conveyed free and clear of all liens and encumbrances, a recent property appraisal, and evidence that the contributed property will be used for the approved use described in the application; and

(d) Any other information considered necessary by the Program.

(3) Notice of certification may be made by the Assistant Secretary for Neighborhood Revitalization.

B. Timing.

(1) A request for certification may not be accepted for contributions received before January 1, 1997.

(2) An initial claim for a tax credit shall be made for the taxable year in which the contribution is made.

(3) The contribution shall be received by the nonprofit organization within the deadline set by the Program.

(4) A request for certification shall be submitted by the nonprofit organization and received by the Program by the later of:

(a) The end of the taxable year; or

(b) 1 month after the contribution is made.

C. Refusal to Certify Contribution. The Program may refuse a request for certification of a contribution if it determines that:

(1) The maximum amount of contributions eligible for Program tax credits for that project would be exceeded by the sum of:

(a) The amount of the proposed contribution; and

(b) The total amount of contributions previously certified for that project for the State's fiscal year;

(2) The business entity or individual has overstated the value of any nonmonetary contribution included; or

(3) The request for certification is not made in a timely manner.

D. Calculating the Tax Credit.

(1) The tax credit allowed to a business entity or an individual shall be equal to 50 percent of the amount of the contribution that:

(a) Was made in the taxable year of the business entity or individual; and

(b) Has been certified by the Program.

(2) For any taxable year, the sum of all Program tax credits, including any carryover credits, may not exceed the lesser of:

(a) $250,000; or

(b) The total amount of tax otherwise payable by the business entity or individual for the taxable year.

(3) Any excess credit that would have been allowed but for the limitations of §D(2) of this regulation may be carried over and applied as a credit for succeeding taxable years until the earlier of:

(a) The full amount of the excess tax credit is used; or

(b) The expiration of the fifth taxable year after the taxable year in which the contribution was made.

E. The same tax credit may not be applied more than once against different taxes by the same taxpayer.