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CDFI FUND ISSUES GUIDANCE ON TARGETED POPULATIONS

WASHINGTON, D.C.- October 6, 2008

The Community Development Financial Institutions (CDFI) Fund last week published guidance with respect to how community development entities (CDEs) may serve certain geographic areas and targeted populations under the New Markets Tax Credit (NMTC) program. Click here for more information.

To discuss this and other developments in the NMTC program, join Novogradac & Company at the New Markets Tax Credit Investors Conference, October 22-24, in Boston.

HOUSE APPROVES RESCUE BILL WITH RETC, NMTC, LIHTC PROVISIONS

WASHINGTON, D.C. - October 3, 2008

The House today voted 263 to 171 to approve H.R. 1424, the Emergency Economic Stabilization Act of 2008, as amended by the Senate earlier this week. In addition to addressing concerns of the stability of the economy and financial system, H.R. 1424 extends the production tax credit (PTC) for wind energy for one year, the investment tax credit (ITC) for solar energy projects for eight years and the new markets tax credit (NMTC) for one year. The bill also provides additional low-income housing tax credit (LIHTC) authority for disaster relief in the Midwest as well as in Texas and Louisiana. Click here for a summary of the energy, extenders and disaster tax provisions included in the Emergency Economic Stabilization Act of 2008.

An additional $8 per capita in LIHTC authority is provided for 2008, 2009 and 2010 for the Midwestern Disaster Area. H.R. 1424 also provides an additional $16 per capita in LIHTC authority for 2008, 2009 and 2010 to areas affected by Hurricane Ike, which include Chambers, Galveston, Jefferson and Orange counties in Texas and Calcasieu and Cameron parishes in Louisiana.

The White House has expressed strong support for the bill and President George W. Bush is expected to sign it into law promptly.

NMTC, RETC EXTENSIONS ADDED TO FINANCIAL RESCUE BILL

WASHINGTON, D.C.- October 1, 2008

The Senate last night approved a unanimous consent agreement to attach a package of tax extenders to upcoming financial rescue legislation. This previously-passed tax measure would provide a patch for the alternative minimum tax and extend the production tax credit for wind energy for one year, the investment tax credit for solar energy projects for eight years and the new markets tax credit for one year. Reports indicate this move was intended to increase bicameral support for the Emergency Economic Stabilization Act of 2008, which the House rejected on Monday. The Senate is expected to vote this evening on the legislative package consisting of the Emergency Economic Stabilization Act of 2008, an increase in federal coverage of bank deposits to $250,000 and the Senate-passed tax extenders, and a House vote is expected on Thursday.

Background information and analysis of these proposals can be downloaded via the Novogradac Report on Tax Credits, a weekly podcast available online at www.novoco.com/podcast.

To discuss the future of these tax incentives, join Novogradac & Company at the New Markets Tax Credit Investors Conference, October 22-24, in Boston or November 13 - 14 in Washington, D.C. for the Financing Renewable Energy Conference.

HOUSE VOTES TO EXTEND NMTC, RETCS

WASHINGTON, D.C.- September 26, 2008

The House today approved H.R. 7060, Renewable Energy and Job Creation Tax Act of 2008, by a vote of 226-166. The measure was introduced yesterday by House Ways and Means Chairman Charles Rangel, D-N.Y. It would extend a number of expiring tax incentives, including the new markets tax credit and renewable energy tax credits. The bill differs from the extension legislation passed earlier this week in the Senate, and those differences remain to be resolved before a final measure can be sent to the White House for approval.

For more information, tune in to the Novogradac Report on Tax Credits, a weekly podcast that provides the latest news in the fields of renewable energy, community development and affordable housing.

To discuss the future of the NMTC program, join Novogradac & Company at the New Markets Tax Credit Investors Conference, October 22-24, in Boston.

SENATE VOTES TO EXTEND NMTC, IRS PROPOSES TARGETED POP. RULE

WASHINGTON, D.C.- September 24, 2008

The Senate yesterday approved by a vote of 93-2 a package of disaster relief measures and tax extenders including a one year extension of the new markets tax credit (NMTC). The $150 billion Senate proposal was a substitute to H.R. 6049, which was a version of tax extenders approved by the House earlier this year. The bill will now be returned to the House for consideration.

To discuss the future of the NMTC program, join Novogradac & Company at the New Markets Tax Credit Investors Conference, October 22-24, in Boston.

IRS PROPOSES RULE FOR TARGETED POPULATIONS

WASHINGTON, D.C.- September 23, 2008

The Treasury Department and Internal Revenue Service (IRS) have released proposed regulations regarding targeted populations under Section 45D(e)(2) of the Internal Revenue Code (IRC). The proposed rule describes how an entity serving certain targeted populations under Section 45D(e)(2) can meet the requirements to be a qualified active low-income community business for the purposes of the new markets tax credit (NMTC). A public hearing on the rule is scheduled for January 22, 2009.

The proposed rule will also be discussed in detail at the New Markets Tax Credit Investors Conference, October 22-24, in Boston.

SENATE MAY CONSIDER TWO-YEAR NMTC EXTENSION THIS WEEK

WASHINGTON, D.C.- September 17, 2008

Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Chuck Grassley, R-Iowa, yesterday announced an agreement with the Senate's Democratic and Republican leadership to move legislation that includes the $40 billion package of energy tax incentives unveiled last week by Sens. Baucus and Grassley, as well as a patch for the alternative minimum tax (AMT), $7 billion in disaster relief for the Midwest, and two year extensions of expired expiring business tax provisions, including the new markets tax credit (NMTC). Senators may vote this week to replace the current text of H.R. 6049, energy and tax extender legislation approved in the House earlier this year, with the revised tax extenders language.

To discuss the latest developments in the NMTC program, join Novogradac & Company at the Multi Credit Conference, October 1-3 in St. Louis, and the New Markets Tax Credit Investors Conference, October 22-24, in Boston.

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