Utah Code 63N-4-309. Exit
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Terms Used In Utah Code 63N-4-309
- Closing date: means the date on which a rural investment company collects:(3)(a) all of the investments described in Subsection 63N-4-303(7) related to phase one investment authority; or(3)(b) all of the investments described in Subsection 63N-4-303(7) related to phase two investment authority. See Utah Code 63N-4-302
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Excess return: means the difference between:
(6)(a)(i) the present value of all growth investments made by a rural investment company on the day the rural investment company applies to exit the program under Section 63N-4-309, including the present value of all distributions and gains from the growth investments; and(6)(a)(ii) the sum of the amount of the original growth investment and an amount equal to any projected increase in the equity holder's federal or state tax liability, including penalties and interest, related to the equity holder's ownership, management, or operation of the rural investment company. See Utah Code 63N-4-302- Investment authority: means the minimum amount of investment a rural investment company must make in eligible small businesses in order for credit-eligible contributions to the rural investment company to qualify for a rural job creation tax credit under Section 59-7-621 or 59-10-1038. See Utah Code 63N-4-302
- Phase one investment authority: means investment authority the office grants a rural investment company based on an application submitted under Subsection 63N-4-303(1)(b)(i). See Utah Code 63N-4-302
- Phase two investment authority: means investment authority the office grants a rural investment company based on an application submitted under Subsection 63N-4-303(1)(b)(ii). See Utah Code 63N-4-302
- Program: means the provisions of this part applicable to a rural investment company. See Utah Code 63N-4-302
- Rural investment company: means a person approved by the office under Section 63N-4-303. See Utah Code 63N-4-302
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- State reimbursement amount: means the difference between:
(20)(a)(i) 50% of the rural investment company's credit-eligible capital contributions; and(20)(a)(ii) the product of:(20)(a)(ii)(A) the total sum of new annual jobs reported to the office; and(20)(a)(ii)(B) $20,000 with respect to phase one investment authority, or $15,000 with respect to phase two investment authority. See Utah Code 63N-4-302- Tax credit: means a rural job creation tax credit created by Section 59-7-621 or 59-10-1038. See Utah Code 63N-4-302
(1)(a) On or after the seventh anniversary of the closing date, and on or before the twelfth anniversary of the closing date, each rural investment company shall apply to the office to exit the program and no longer be subject to this part.(1)(b) A rural investment company that receives phase one investment authority and phase two investment authority shall separately apply to exit the program in relation to the phase one investment authority and the phase two investment authority.(2) An application submitted under Subsection (1) shall be in a form and in accordance with procedures prescribed by the office and shall include a calculation of the state reimbursement amount.(3) In evaluating the exit application, if no tax credit certificates have been revoked and the rural investment company has not received a notice of revocation that has remained uncorrected under Subsection 63N-4-305(3)(b), the rural investment company is eligible for exit.(4)(4)(a) The office shall respond to the application within 30 days of receipt and include confirmation of the state reimbursement amount.(4)(b) The office shall not unreasonably deny an application submitted under this section.(4)(c) If the office denies the application, the office shall provide the reasons for the determination to the rural investment company.(5) If a rural investment company fails to submit an exit application in accordance with Subsection (1), the office shall:(5)(a) calculate the state reimbursement amount using the best available information; and(5)(b) provide the confirmation described in Subsection (4)(a) within 30 days of the twelfth anniversary of the closing date.(6) Within 60 days after the day on which the confirmation of the state reimbursement amount is received by the rural investment company, the rural investment company shall make a cash distribution to the state in an amount equal to the lesser of:(6)(a) the state reimbursement amount; and(6)(b) the excess return.(7) The office shall notify the rural investment company once payments equal to the amount described in Subsection (4) have been received.(8) Any amounts collected under this section shall be deposited into the General Fund.