While the binding commitment must be made at the commencement of the program period, may the actual contribution be made at a subsequent time? May the TNInvestco utilize funding tranches?
The actual contribution may be made at a subsequent time, provided that the benchmarks set out in 2009 Public Chapter 610, Section 7, are met. This issue potentially impacts federal tax liabilities associated with this transaction. By statute, funds awarded tax credits will work with the state to structure the award of the credit to minimize federal tax obligations. Additionally, the TNInvestco may utilize funding tranches.
