Community development entity investment credit.
(a) Definitions.
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(a) Definitions.
In this subsection: 1. “Applicable percentage” means 0 percent for the first 2 credit allowance dates and 10 percent for the next 5 credit allowance dates. 2. “CDFI fund” means the community development financial institutions fund of the U.S. treasury department or any agency or instrumentality of the federal government that administers the program authorized under section 45D of the Internal Revenue Code. 3. “Claimant” means a person who files a claim under this subsection. 4. “Credit allowance date” means, with respect to any qualified equity investment, any of the following dates: a. The date on which the investment is initially made. b. Each of the 6 anniversary dates of that date thereafter. 5. “Purchase price” means the amount paid to a qualified community development entity for a qualified equity investment. 6. a. “Qualified active low-income community business” has the meaning given in section 45D (d) (2) of the Internal Revenue Code except as provided in subd. 6. b. “Qualified active low-income community business” includes a business for the duration that it receives a qualified low-income community investment if the qualified community development entity reasonably expects at the time that it makes the qualified low-income community investment in the business that the business will continue to be considered a qualified active low-income community business under section 45D (d) (2) of the Internal Revenue Code throughout the entire period that it receives the qualified low-income community investment. b. “Qualified active low-income community business” does not include a business that derives or projects to derive 15 percent or more of its annual income from the rental or sale of real estate. This subd. 6. b. does not apply to a business that is controlled by or under common control with another business if the 2nd business does not derive or project to derive 15 percent or more of its annual income from the rental or sale of real estate and is the primary tenant of the real estate leased from the initial business. 7. “Qualified community development entity” has the meaning given in section 45D (c) of the Internal Revenue Code but includes only entities that have entered into, or that are controlled by an entity that has entered into, an allocation agreement with the CDFI fund with respect to tax credits authorized under section 45D of the Internal Revenue Code that includes this state within the service area set forth in that allocation agreement. 8. “Qualified equity investment” has the meaning given in s. 76.633 (1) (i). 9. “Qualified low-income community investment” means any capital or equity investment in, or loan to, a qualified active low-income community business.
“Applicable percentage” means 0 percent for the first 2 credit allowance dates and 10 percent for the next 5 credit allowance dates.
“CDFI fund” means the community development financial institutions fund of the U.S. treasury department or any agency or instrumentality of the federal government that administers the program authorized under section 45D of the Internal Revenue Code.
“Claimant” means a person who files a claim under this subsection.
“Credit allowance date” means, with respect to any qualified equity investment, any of the following dates: a. The date on which the investment is initially made. b. Each of the 6 anniversary dates of that date thereafter.
The date on which the investment is initially made.
Each of the 6 anniversary dates of that date thereafter.
“Purchase price” means the amount paid to a qualified community development entity for a qualified equity investment.
a. “Qualified active low-income community business” has the meaning given in section 45D (d) (2) of the Internal Revenue Code except as provided in subd. 6. b. “Qualified active low-income community business” includes a business for the duration that it receives a qualified low-income community investment if the qualified community development entity reasonably expects at the time that it makes the qualified low-income community investment in the business that the business will continue to be considered a qualified active low-income community business under section 45D (d) (2) of the Internal Revenue Code throughout the entire period that it receives the qualified low-income community investment. b. “Qualified active low-income community business” does not include a business that derives or projects to derive 15 percent or more of its annual income from the rental or sale of real estate. This subd. 6. b. does not apply to a business that is controlled by or under common control with another business if the 2nd business does not derive or project to derive 15 percent or more of its annual income from the rental or sale of real estate and is the primary tenant of the real estate leased from the initial business.
“Qualified active low-income community business” has the meaning given in section 45D (d) (2) of the Internal Revenue Code except as provided in subd. 6. b. “Qualified active low-income community business” includes a business for the duration that it receives a qualified low-income community investment if the qualified community development entity reasonably expects at the time that it makes the qualified low-income community investment in the business that the business will continue to be considered a qualified active low-income community business under section 45D (d) (2) of the Internal Revenue Code throughout the entire period that it receives the qualified low-income community investment.
“Qualified active low-income community business” does not include a business that derives or projects to derive 15 percent or more of its annual income from the rental or sale of real estate. This subd. 6. b. does not apply to a business that is controlled by or under common control with another business if the 2nd business does not derive or project to derive 15 percent or more of its annual income from the rental or sale of real estate and is the primary tenant of the real estate leased from the initial business.
“Qualified community development entity” has the meaning given in section 45D (c) of the Internal Revenue Code but includes only entities that have entered into, or that are controlled by an entity that has entered into, an allocation agreement with the CDFI fund with respect to tax credits authorized under section 45D of the Internal Revenue Code that includes this state within the service area set forth in that allocation agreement.
“Qualified equity investment” has the meaning given in s. 76.633 (1) (i).
“Qualified low-income community investment” means any capital or equity investment in, or loan to, a qualified active low-income community business.
Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2024, a claimant may claim as a credit against the tax imposed under s. 71.43, for a taxable year in which the insurer holds a qualified equity investment on the credit allowance date, an amount equal to the applicable percentage for that credit allowance date multiplied by the purchase price paid to the qualified community development entity for the qualified equity investment.
No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).
Section 76.633 (3), (4), (5), (6), (7), (8), and (9), as it applies to the credit under s. 76.633, applies to the credit under this subsection.