(a) The priority 5 carryforward classification applies to an issuer that:
(1) was created to act on behalf of this state or one or more political subdivisions of this state; and
(2) is applying for carryforward for a project:
(A) for which there has been an inducement resolution or other comparable preliminary approval; and
(B) with respect to which:
(i) a binding contract to incur significant expenditures for construction, reconstruction, or rehabilitation was entered into before submission of the application;
(ii) significant expenditures for construction, reconstruction, or rehabilitation were readily identifiable with and necessary to carry out a binding contract for the supply of property or services or the sale of output; or
(iii) significant expenditures were paid or incurred before submission of the application.
(b) In this section, "significant expenditures" means expenditures that are greater than the lesser of:
(1) $1 million; or
(2) 10 percent of the reasonably anticipated cost of the project.