Investor Presentaiton
PREAPPROVAL PROCESS
■ Preapproval: Capped credits generally require preapproval, as it is not possible to implement a credit cap via tax
returns
Preapproval Process:
Generally requires taxpayer to submit an application with an estimate of what they believe they will qualify for
When the credit is generated, the credit amount is adjusted down to the value actually earned
For aggregate caps: credit is prorated on the date that the cap is met. Following that day, additional applicants are denied
preapproval, even if they meet certification requirements. Many aggregate caps are met in one day.
Note: With capped preapproval credits, it is not possible to add money back to the annual pot after adjustments are made to an entity's credit. All
amounts over the adjusted amount are considered lost and go unused.
DEPARTMENT of REVENUE
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