OAR 330-225-0050: Completeness Review and Allocation of Potential Tax Credits

(1) The department will determine the allocation of potential tax credits as detailed in the Opportunity Announcement prior to beginning review of an application. (2) Tax credits must be claimed over a five year period as required by ORS 315.336, and as shown below: (a) If a preliminary certification is issued on or after January 1, 2012, and before January 1, 2013, the tax credit is 25 percent of certified cost. The tax credit allowed in each of five tax years is 5 percent of the certified cost. (b) If a preliminary certification is issued on or after January 1, 2013, and before January 1, 2014, the tax credit is 20 percent of certified cost. The tax credit allowed in each of five tax years is 4 percent of the certified cost. (c) If a preliminary certification is issued on or after January 1, 2014, and before January 1, 2015, the tax credit is 15 percent of certified cost. The tax credit allowed in each of five tax years is 3 percent of the certified cost. (d) If a preliminary certification is issued on or after January 1, 2015, and before January 1, 2016, the tax credit is 10 percent of certified cost. The tax credit allowed in each of five tax years is 2 percent of the certified cost. (3) The department will review all preliminary certification applications to determine whether: (a) All sections of the application are complete as outlined in the Opportunity Announcement. (b) The applicant has submitted the required fee. (c) The service meets the definition of transit services. (d) The applicant is applying prior to the performance of the project. (A) If the applicant applies after performance of the project has started, the department will deny the application unless a written explanation of the special circumstances is received and approved by the director. The director may pre-qualify waivers as provided in the Opportunity Announcement; a written description is not required for the period covered by a pre-qualified waiver. (B) Failing to submit a timely application or not being selected for a grant or tax credit under this or prior department programs does not constitute special circumstances. (e) The transit services are located in Oregon. (f) Other requirements described in the Opportunity Announcement have been met. (4) If the department finds that the application is complete, the application will be included in the process used to allocate potential tax credits. (5) The department will deny all incomplete applications and notify applicants in writing of the reason for denying the application. (6) If the department receives applications with a total amount of requested potential tax credits in excess of the amount available for the Opportunity Announcement, the department will use the following process to allocate potential tax credits between applicants. The department will: (a) Include all complete applications received within the opportunity period in the allocation process. (b) Sum the total requested tax credit amount of all complete applications and determine the percent of the total requested tax credit amount represented by each application. (c) If any applications represent 20 percent or more of the total, restrict those applications to 20 percent. (d) If step (c) results in a total of less than 100 percent, re-allocate the percentage points between applications, excluding those restricted to 20 percent. (e) Repeat the reduction (c) and re-allocation (d) steps until all the available tax credits are allocated. (f) Calculate the potential tax credit allocated to each application to ensure no application is allocated more than the requested amount. (g) If an application is allocated more than the requested amount, allocate the additional amount proportionately to applicants restricted to 20 percent of the total. (7) The department will notify applicants of the amount of potential tax credit allocated and the fee payment required for technical review. (8) If the allocation of potential tax credits to an applicant is reduced during the same biennium that the tax credits were first allocated, the department may reallocate the unallocated potential tax credits to applicants from the same Opportunity Announcement that were allocated less than their requested amount. (9) The department considers the completeness review as a test; the decision to deny an incomplete application is not subject to review under ORS Chapter 183.