§1928. Voluntary decertification

A. At any time a certified Louisiana capital company may voluntarily decertify particular investment pools by sending written request for decertification to the commissioner and by remitting to the secretary of the Department of Revenue and the commissioner of the Department of Insurance the amounts described in R.S. 51:1927(C). These amounts are due notwithstanding the fact that the years for which the credits were originally taken may have prescribed. Thereafter, the capital company shall be a full subrogee to the state of Louisiana through the Department of Revenue and the Department of Insurance for such sums as were remitted by the company, against its investors or equity owners.

B.(1) With respect to any investment pool certified on or before December 31, 1998, after ten years of continued certification of any investment pool or at any time when a certified Louisiana capital company has invested sixty percent of any investment pool in qualified investments, a certified Louisiana capital company may voluntarily decertify such investment pool by sending a written request for a review and decertification. If the decertification of the investment pool is approved by the commissioner, no tax credits claimed or to be claimed under R.S. 51:1924(A) and (B), R.S. 51:1932, and R.S. 22:832(E) with respect to such investment pool will be subject to repayment, recapture, retaliation, or forfeiture by the certified Louisiana capital company or its investors.

(2) With respect to any investment pools certified after December 31, 1998, but prior to December 31, 2001, when a certified Louisiana capital company has invested one hundred percent of any investment pool in qualified investments, the certified Louisiana capital company may voluntarily decertify such investment pool by sending a written request for a review and decertification. If the decertification of the investment pool is approved by the commissioner, no tax credits claimed or to be claimed under R.S. 51:1924(A) and (B), R.S. 51:1932, and R.S. 22:832(E) with respect to such investment pool will be subject to repayment, recapture, retaliation, or forfeiture by the certified Louisiana capital company or its investors.

(3) With respect to any investment pools certified after January 1, 2002, when the certified capital company has invested one hundred percent of such investment pool in qualified investments, with a minimum of twenty-five percent of such investment pool having been invested in disadvantaged businesses, the certified Louisiana capital company may voluntarily decertify such investment pool by sending a written request for a review and decertification. The dollar amount of any qualified investment made in a qualified venture fund after August 1, 2002, shall count one hundred fifty percent towards the satisfaction of the one hundred percent requirement of this Subsection and towards the seven-year one hundred percent requirement contained in R.S. 51:1927.1. In addition, any investment in a qualified venture fund after August 1, 2002, shall count one hundred percent towards the satisfaction of the twenty-five percent requirement imposed by this Section on investment pools certified after January 1, 2002. If the decertification of the investment pool is approved by the commissioner, no tax credits claimed or to be claimed under R.S. 51:1924(A) and (B), R.S. 51:1932, and R.S. 22:832(E) with respect to such investment pool will be subject to repayment, recapture, retaliation, or forfeiture by the certified Louisiana capital company or its investors.

C. No distributions to equity owners shall be made from the certified capital contained within a pool prior to decertification other than for any of the following:

(1) Debt service.

(2) Tax payments or distributions to the equity owners of a certified Louisiana capital company in an amount equal to any projected increase in tax liability to the extent such increase is related to the ownership, management, or operation of the certified Louisiana capital company.

(3) A management fee which does not exceed two and one-half percent per annum of the pool's certified capital unless otherwise approved by the secretary; provided with respect to any investment pools formed after December 31, 2001, such management fee shall only be allowed for the seven years following the date the initial investment to the pool is made.

Acts 1983, No. 642, §1; Acts 1987, No. 703, §1; Acts 1989, No. 496, §1; Acts 1993, No. 279, §2, eff. June 2, 1993; Acts 1996, No. 21, §2, eff. June 27, 1996; Acts 2001, No. 1122, §1, eff. July 1, 2001; Acts 2002, No. 84, §2, eff. June 25, 2002; Acts 2008, No. 415, §2, eff. Jan. 1, 2009.