R357-10-8. Form and Notice for Tax Credits

  (1) A qualified community development entity (or transferee subsidiary or controlling entity) that has issued its qualified equity investments and has provided the evidence required in Utah Code Section 63M-1-3503(8)(b) shall notify the office annually of the entities that are eligible to use tax credits as follows:

  (a) By submitting the form "Notification of Qualified Equity Investment for Small Business Jobs Act Tax Credits" to the office; or, if applicable,

  (b) By submitting the form "Notification of Change in Allocation of Tax Credits" to the office.

  (i) A form "Notification of Change in Allocation of Tax Credits" may only be used in cases where there has been a change or amendment to an agreement among the partners, shareholders or members of a partnership, limited liability company or S-Corporation.

  (c) Each notice shall be accompanied by documentation of the qualified equity investment made in the qualified community development entity with respect to the entity claiming a tax credit.

  (d) Each notice shall be accompanied by the documents required in Utah Code Section 63M-1-3503(12)(a).

  (e) Each notice shall be accompanied by a completed "Acknowledgement and Acceptance of Tax Credit Recapture" form provided by the office.

  (f) For tax credits allowed to a partnership, limited liability company or S-corporation, the notice shall be accompanied by any and all necessary documentation or agreements to demonstrate how the credits will be used by the partners, members or shareholders.

  (2) Each tax credit certificate shall contain the following contingencies:

  (a) A certification provision requiring the entity receiving the tax credit to certify:

  (i) it is subject to the recapture provisions set forth in Section 63M-1-3504;

  (ii) it will not sell the tax credit on the open market;

  (iii) it will provide notice of any Federal recapture to the Office within 10 days of receiving notification of the recapture.

  (b) Be available for use annually in accordance with the Applicable Percentages to the entity receiving the tax credit after receipt and acceptance of the qualified community development entity's annual report to the Office.

  (i) Any event of recapture outlined by the Utah Small Business Jobs Act or this Rule shall prevent the use of an annual tax credit certificate to the entity receiving the tax credit.