1.  A qualified community development entity or impact qualified community development entity that seeks to have an equity investment or long-term debt security designated as a qualified equity investment or impact qualified equity investment and eligible for tax credits under this chapter must pay a fee in the amount of 0.5 percent of the amount of the equity investment or long-term debt security requested to be designated as a qualified equity investment or impact qualified equity investment to the Department. The fee must be deposited in the New Markets Performance Guarantee Account, which is hereby created in the State General Fund. The entity forfeits the fee in its entirety if:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(a) The qualified community development entity or impact qualified community development entity and its affiliates and partners which are also qualified community development entities or impact qualified community development entities fail to issue the total amount of qualified equity investments or impact qualified equity investments certified by the Department and receive cash in the total amount certified pursuant to subsection 3 of NRS 231A.230; or

(b) The qualified community development entity or impact qualified community development entity or any affiliate or partner which is also a qualified community development entity or impact qualified community development entity that issues a qualified equity investment or impact qualified equity investment certified under this chapter fails to meet the investment requirement specified in subsection 3 of NRS 231A.250 by the second credit allowance date of the qualified equity investment or impact qualified equity investment. Forfeiture of the fee under this paragraph is subject to the 6-month cure period established pursuant to NRS 231A.260.

2.  The fee required pursuant to subsection 1 must be paid to the Department and held in the New Markets Performance Guarantee Account until such time as compliance with the provisions of subsection 1 has been established. The qualified community development entity or impact qualified community development entity may request a refund of the fee from the Department no sooner than 30 days after having met all the requirements of subsection 1. The Department shall refund the fee within 30 days after such a request or being given notice of noncompliance.