Section 40-14B-1 Definitions. As used in this chapter, the following terms shall have the following meanings: (1) AFFILIATE. An affiliate of another person shall include any of the following: a. A person who directly or indirectly either: 1. Beneficially owns 15 percent or more of the outstanding voting securities or other voting ownership interests of […]
Section 40-14B-10 Qualified distributions. (a) A certified capital company may make a qualified distribution at any time. To make a distribution or payment, other than a qualified distribution, a company must have made qualified investments in an amount cumulatively equal to at least 100 percent of its certified capital. (b) Notwithstanding subsection (a), a company […]
Section 40-14B-11 Annual review; decertification. (a) The Alabama Development Office shall conduct an annual review of each certified capital company to: (1) Ensure that the company continues to satisfy the requirements of this chapter and that the company has not made any investment in violation of this chapter. (2) Determine the eligibility status of its […]
Section 40-14B-12 Recapture of forfeiture of premium tax credits. (a) Decertification of a certified capital company may cause the recapture of premium tax credits previously claimed and the forfeiture of future premium tax credits to be claimed by certified investors with respect to the company, as follows: (1) Except as set forth in subdivision (2), […]
Section 40-14B-13 Indemnification, etc., of certified investors. The certified capital company may agree to indemnify, or purchase a guaranty, indemnity, bond, insurance policy, or other payment undertaking for the benefit of a certified investor for losses resulting from the recapture or forfeiture of premium tax credits under Section 40-14B-12. (Act 2002-429, p. 1108, §13.)
Section 40-14B-14 Vested premium tax credit – Generally. (a) A certified investor who makes an investment of certified capital shall in the year of investment earn a vested credit against state premium tax liability equal to 100 percent of the certified investor’s investment of certified capital, subject to the limits imposed by this chapter. A […]
Section 40-14B-15 Vested premium tax credit – Claim. (a) A premium tax credit allocation claim must be prepared and executed by a certified investor on a form provided by the Alabama Development Office. The certified capital company must file the claim with the Alabama Development Office not later than October 1, 2002. The premium tax […]
Section 40-14B-16 Vested premium tax credit – Amounts allowed. (a) The total amount of certified capital for which premium tax credits may be allowed under this chapter for all years in which premium tax credits are allowed is one hundred million dollars ($100,000,000). Notwithstanding any provision of this chapter to the contrary, the granting of […]
Section 40-14B-17 Vested premium tax credit – Pro rata allocation. (a) If the total premium tax credits claimed by all certified investors exceeds the total limits on premium tax credits established by subsection (a) of Section 40-14B-16, the Alabama Development Office shall allocate the total amount of premium tax credits allowed under this chapter to […]
Section 40-14B-18 Certified capital as admitted asset. In any case under this chapter or another law of this state in which the assets of a certified investor are examined or considered, the certified capital may be treated as an admitted asset, subject to the applicable statutory valuation procedures. (Act 2002-429, p. 1108, §18.)
Section 40-14B-19 Rate making for insurance contract. A certified investor is not required to reduce the amount of premium tax included by the investor in connection with rate making for any insurance contract written in this state because of a reduction in the investor’s Alabama premium tax derived from the credit granted under this chapter. […]
Section 40-14B-2 Administration of chapter. The Alabama Development Office shall administer this chapter and may adopt rules and forms as necessary to implement this chapter. (Act 2002-429, p. 1108, §2.)
Section 40-14B-20 Transfer or assignment of premium tax credits. (a) The Alabama Development Office shall adopt rules to facilitate the transfer or assignment of premium tax credits by certified investors. A certified investor may transfer or assign premium tax credits only in compliance with the rules adopted under this subsection. (b) The transfer or assignment […]
Section 40-14B-21 Biennial report. (a) The Alabama Development Office shall prepare a biennial report with respect to results of the implementation of this chapter. The report must include all of the following: (1) The number of certified capital companies holding certified capital. (2) The amount of certified capital invested in each certified capital company. (3) […]
Section 40-14B-22 Allocation of additional tax credits. (a) Subject to, and in accordance with, this chapter, there shall be a second allocation of premium tax credits to investors who contribute certified capital after June 14, 2007, to certified capital companies in an amount equal to the total pool of tax credits allocated pursuant to this […]
Section 40-14B-3 Application for certification. (a) The Director of the Alabama Development Office by rule shall establish the application procedures for certified capital companies. (b) An applicant must file an application in the form prescribed by the Alabama Development Office accompanied by a nonrefundable application fee of seven thousand five hundred dollars ($7,500). The application […]
Section 40-14B-4 Prohibited activities. (a) An insurance company or other persons who may have state premium tax liability or the affiliates of the insurance companies or other persons may not, directly or indirectly, do any of the following: (1) Manage a certified capital company. (2) Beneficially own, whether through rights, options, convertible interests, or otherwise, […]
Section 40-14B-5 Statement included with offering. Any offering material involving the sale of securities of the certified capital company must include the following statement: “By authorizing the formation of a certified capital company, the State of Alabama does not endorse the quality of management or the potential for earnings of the company and is not […]
Section 40-14B-6 Qualified investments. (a) To continue to be certified, a certified capital company shall make qualified investments according to the following schedule: (1) Before the third anniversary of its allocation date, a company must have made qualified investments in an amount cumulatively equal to at least 35 percent of its certified capital. (2) Before […]
Section 40-14B-7 Development Office opinion as to proposed investments. (a) A certified capital company may, before making an investment in a business, request from the Alabama Development Office a written opinion as to whether the business in which it proposes to invest is a qualified technology business. (b) The Alabama Development Office shall, not later […]
