58.1-439.20 - Proposals; regulations; tax credits authorized; amount for programs.
§ 58.1-439.20. Proposals; regulations; tax credits authorized; amount forprograms.
A. Any neighborhood organization may submit a proposal, other than educationproposals, to the Commissioner of the State Department of Social Servicesrequesting an allocation of tax credits for use by business firms makingdonations to the neighborhood organization. Neighborhood organizations maysubmit education proposals to the Superintendent of Public Instructionrequesting an allocation of tax credits for use by business firms makingdonations to the neighborhood organization.
The proposal shall set forth the program to be conducted by the neighborhoodorganization, the impoverished people to be assisted, the estimated amount tobe donated to the program, and the plans for implementing the program.
B. The State Board of Social Services and the Board of Education are herebyauthorized to adopt regulations (or, alternatively, guidelines in the case ofthe Board of Education) for the approval or disapproval of such proposals byneighborhood organizations and for determining the value of the donations.Such regulations or guidelines shall contain a requirement that an annualaudit, review, or compilation as required by OMB Circular No. A-133 as may beapplicable to nonprofit organizations be provided by the neighborhoodorganization as a prerequisite for approval. Such regulations or guidelinesshall also provide that at least 50 percent of the persons served by theneighborhood organization are impoverished people as defined in §58.1-439.18. Such regulations or guidelines shall provide for the equitableallocation of the available amount of tax credits among the approvedproposals submitted by neighborhood organizations. The regulations orguidelines shall also provide that at least 10 percent of the availableamount of tax credits each year shall be allocated to qualified programsproposed by neighborhood organizations not receiving allocations in thepreceding year; however, if the amount of tax credits for qualified programsrequested by such neighborhood organizations is less than 10 percent of theavailable amount of tax credits, the unallocated portion of such 10 percentof the available amount of tax credits shall be allocated to qualifiedprograms proposed by other neighborhood organizations.
C. If the Commissioner of the State Department of Social Services or theSuperintendent of Public Instruction approves a proposal submitted by aneighborhood organization, the organization shall make the allocated taxcredit amounts available to business firms making donations to the approvedprogram. A neighborhood organization shall not assign or transfer anallocation of tax credits to another neighborhood organization without theapproval of the Commissioner of the State Department of Social Services orthe Superintendent of Public Instruction, as applicable.
Notwithstanding any other provision of law, (i) no more than an aggregate of$0.5 million in tax credits shall be approved in a fiscal year to aneighborhood organization or to a grouping of neighborhood organizationaffiliates for all education proposals, and (ii) no more than an aggregate of$0.5 million in tax credits shall be approved in a fiscal year to aneighborhood organization or to a grouping of neighborhood organizationaffiliates for all other proposals combined.
D. The total amount of tax credits granted for programs approved under thisarticle for each fiscal year shall not exceed $11.9 million allocated asfollows: $4.9 million for education proposals for approval by theSuperintendent of Public Instruction and $7 million for all other proposalsfor approval by the Commissioner of the State Department of Social Services.If the amount of tax credits requested by neighborhood organizations andapproved by the Superintendent for education proposals is less than $4.9million, then the balance of such amount shall be allocated to programs forapproval by the Commissioner of the State Department of Social Services. TheSuperintendent and the Commissioner of the State Department of SocialServices shall work cooperatively for purposes of ensuring that neighborhoodorganization proposals are submitted to the proper state agency. TheSuperintendent and the Commissioner of the State Department of SocialServices may request the assistance of the Department of Taxation forpurposes of determining whether or not anticipated donations for which taxcredits are requested by a neighborhood organization likely qualify as acharitable donation under federal tax laws and regulations.
E. Actions of (i) the State Department of Social Services, or theCommissioner of the same, or (ii) the Superintendent or the Department ofEducation relating to the review of neighborhood organization proposals andthe allocation of tax credits to proposals shall be exempt from theprovisions of the Administrative Process Act (§ 2.2-4000 et seq.). Decisionsof (a) the State Department of Social Services, or the Commissioner of thesame, or (b) the Superintendent or the Department of Education shall be finaland not subject to review or appeal.
F. Tax credits shall not be authorized after fiscal year 2011.
(2008, c. 585; 2009, cc. 10, 502, 851.)