NAC319.972. Initial apportionment of tax credits; set-aside accounts; priorities; preference points; reservation of tax credits; unused tax credits.

     1. In each annual plan, the Division will add any tax credits carried over by the Division from a previous year and any tax credits awarded to the State from the national pool of unused tax credits to determine the total amount of tax credits available for allocation for the plan year. The Division will, pursuant to the annual plan, make an initial apportionment of the total allocation of tax credits in the following order:

     (a) An allocation to a set-aside account specified in this section.

     (b) An allocation to a geographic account or subaccount specified in this section.

     (c) An allocation to the general pool account specified in this section.

     2. In accordance with the provisions of the Code, the Division will set aside 10 percent of the state ceiling for projects relating to nonprofit organizations as specified in the qualified allocation plan and the Code. The Division will identify those tax credits in the annual plan as minimum tax credits for nonprofit organizations. Pursuant to the annual plan, the Division may set aside additional amounts of tax credits for projects relating to nonprofit organizations and will identify those amounts in the annual plan as additional tax credits for nonprofit organizations. The Division will place any tax credits set aside pursuant to this subsection into a set-aside account. Any reservations and final awards of tax credits from that account will first be charged against the minimum tax credits set aside for nonprofit organizations and then charged against any additional tax credits that are set aside for nonprofit organizations. If the total amount of the minimum tax credits that are set aside for nonprofit organizations is not reserved during the first reservation round, the Division will carry over any unreserved portion of that amount into subsequent rounds as a minimum tax credit to be set aside for nonprofit organizations. Any unreserved minimum amount will not be apportioned to other accounts and will not be carried over into the next plan year. Any unreserved or unused additional tax credits may be reapportioned to other accounts or may be carried over into the next plan year by the Division.

     3. The Division may, pursuant to the annual plan, establish set-aside accounts other than those specified in subsection 2 into which the Division will place tax credits after the minimum and additional tax credits specified in that subsection have been set aside by the Division. The Division will reserve tax credits from the accounts specified in this subsection in accordance with the annual plan. Unless otherwise provided in the annual plan, any unreserved amounts of tax credits remaining in each of those accounts after all eligible applications for a reservation of tax credits from those accounts have been considered during the first reservation round will be transferred to a set-aside account and identified as additional tax credits for nonprofit organizations. The Division may transfer those tax credits before the end of the first reservation round to maximize reservations during that round.

     4. After each apportionment has been made to a set-aside account pursuant to subsections 2 and 3, the Division will:

     (a) Place an amount of tax credits specified in the annual plan into a geographic distribution account; and

     (b) Apportion those credits among geographic subaccounts for counties as provided in the annual plan.

     5. The Division will make reservations of tax credits from the geographic subaccounts specified in subsection 4 based on the location of the project. If, during the first reservation round, the Division does not reserve all of the tax credits placed into the subaccount for:

     (a) Clark County, the Division will transfer any surplus tax credits remaining in that subaccount to the subaccount for Washoe County.

     (b) Washoe County, the Division will transfer any surplus tax credits remaining in that subaccount to a subaccount for all of the counties other than Clark County and Washoe County.

Ê If, at the end of the first round, the Division does not reserve any tax credits from a subaccount described in this subsection, the Division will transfer the tax credits to a general pool account to be carried over or allocated by the Division during a second round.

     6. If the Division does not apportion any tax credits to an account or subaccount pursuant to this section, the Division will place those tax credits into a general pool account. Except as otherwise provided in this section, if the Division does not reserve any tax credits that remain in an account or subaccount after the Division considers all eligible applicants during the first round, the Division will transfer those tax credits to the general pool account and may reserve those tax credits from that account during the first round. Upon completion of the first round, the Division will transfer any unreserved tax credits other than minimum tax credits set aside for nonprofit organizations to the general pool account. The Division will make all subsequent reservations of tax credits from that account in accordance with the provisions of NAC 319.989 and 319.990, regardless of the amount of any tax credits that are set aside for or the geographic location of the project of an applicant.

     7. In addition to any tax credits placed into the general pool account pursuant to subsection 1, the Division will place into that account:

     (a) Any tax credits received by the Division from the national pool of unused tax credits; and

     (b) Any other credits returned to or received by the Division after the date the Division publishes the annual plan.

     8. Except as otherwise provided in this subsection, if an applicant is eligible for tax credits that have been set aside, the Division will first consider his or her application for a reservation of tax credits against the set-aside accounts specified in this section. If the applicant does not receive a reservation of tax credits from a set-aside account, the Division will include the application with all other applications and consider the application for a reservation of tax credits against any appropriate geographic account or subaccount. If an applicant does not receive tax credits from a geographic account or subaccount, the Division will consider reserving tax credits for the applicant from the general pool account. If an applicant qualifies for tax credits that have been set aside and:

     (a) Is the only qualifying applicant for a reservation from a set-aside account or a geographic account or subaccount, the Division may reserve tax credits for that applicant in any manner that maximizes the use of the tax credits that have been set aside and the tax credits in the geographic accounts or subaccounts.

     (b) The amount of tax credits requested in the application exceeds the amount of tax credits available for reservation from a set-aside account, the Division may, based on the number of preference points awarded to the applicant, reserve tax credits for that applicant from any other set-aside account or geographic account or subaccount. Any tax credits reserved pursuant to this paragraph will be an amount that is equal to the amount of tax credits by which the tax credits requested by the applicant exceeds the amount of tax credits available for reservation from the set-aside account.

     9. The Division will award to each applicant a total number of preference points in accordance with the provisions of NAC 319.989. The application of any applicant who is eligible for a reservation of tax credits against an account or subaccount specified in this section will be ranked in order of priority according to the number of preference points awarded to the applicant pursuant to that section. If an application cannot be ranked because the applicant has been awarded a number of preference points that is equal to the number of preference points awarded to another eligible applicant, the Division will rank the application in accordance with the provisions of NAC 319.990. Tax credits will be reserved in accordance with the ranking established pursuant to that section until the account or subaccount is exhausted or the application that is ranked next in order of priority exceeds the balance in the account. Except as otherwise provided in subsection 10, to maximize any reservations against an account or subaccount specified in this section, if the Division makes a reservation of tax credits until an applicant whose application that is ranked next in order of priority requests an amount of tax credits that exceeds the amount available in the account or subaccount and there is a difference of 5 percent or less between the amount requested by the applicant and the amount of tax credits available for reservation, the Division may:

     (a) Offer a reduced amount of tax credits to the applicant, if the amount requested by the applicant may be reduced by 5 percent or less without impairing the financial feasibility of the project; or

     (b) Transfer not more than 5 percent of the amount requested by the applicant from the general pool account and reserve the tax credits accordingly, if a sufficient amount of tax credits has been placed into the general pool account.

     10. If the Division makes a reservation of tax credits until an applicant whose application is ranked next in order of priority requests an amount of tax credits that exceeds the amount available in an account, the Division may award tax credits to an applicant:

     (a) Whose application is ranked next in order of priority to that application; and

     (b) Who requests an amount of tax credits that is equal to or less than the remaining balance in the account.

Ê If an application is not considered for a reservation of tax credits pursuant to this subsection, the Division will consider the application for a reservation of tax credits against another account based on the number of preference points awarded to the applicant.

     11. If all tax credits are not awarded in a reservation round, the Division may:

     (a) Carry over the unused tax credits to the next plan year or place any unused tax credits, other than minimum tax credits set aside for nonprofit organizations, into the general pool account; and

     (b) Initiate a new reservation round.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)