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CDFI FUND INVITES PUBLIC COMMENT ON NMTC APPLICATION

WASHINGTON, D.C. - August 25, 2010

The Community Development Financial Institutions (CDFI) Fund today invited comments concerning the New Markets Tax Credit (NMTC) Program allocation application. Comments will be accepted through October 25, 2010. The 2010 allocation application and the notice of allocation availability (NOAA) for the fiscal year 2010 allocation round are available online at www.newmarketscredits.com or from the NMTC program page of the CDFI Fund’s web site.

To hear the latest updates on the 2010 allocation application round, join applicants, allocatees and other NMTC professionals at the New Markets Tax Credit Investors Conference on October 20-21, 2010 in Chicago, Ill.

HUD FINAL RULE PROHIBITS REQUIRED ESCROWING OF TAX CREDIT EQUITY

WASHINGTON, D.C. - August 23, 2010

The U.S. Department of Housing and Urban Development (HUD) released its final rule today on the prohibition of the escrowing of tax credit equity. The final rule, in accordance with a provision in the Housing and Economic Recovery Act of 2008, bars HUD from requiring the escrowing of equity from the sales of low-income housing tax credits (LIHTCs), historic tax credits (HTCs) and new markets tax credits (NMTCs) for HUD-insured mortgages. Mortgagors will now be able to deposit cash deemed by the Federal Housing Commissioner to be sufficient, when added to the proceeds of the insured mortgage, to assure completion of the project and to pay the initial service charge, carrying charges, and legal and organizational expenses incident to the construction of the project. Additionally, the tax credit equity need not be fully disbursed before the disbursement of mortgage proceeds.

Tune in to tomorrow’s Tax Credit Tuesday podcast to learn more.

FIRST APPLICATION ROUND OPENS FOR OHIO’S STATE NMTC PROGRAM

COLUMBUS, Ohio - August 20, 2010

Gov. Ted Strickland and Ohio Department of Development Director Lisa Patt-McDaniel today announced the opening of the first application period for the Ohio New Markets Tax Credit (NMTC) program. A total of $10 million in tax credits is available in the first round of funding. Community development entities (CDEs) serving Ohio that have already received a tax credit allocation from the federal NMTC program are eligible to apply. Applications for the Ohio NMTC are due on September 20, 2010. Approved applications will be announced by October 31, 2010.

Questions about the program can be directed to Annette Stevenson, CPA, a partner in Novogradac & Company LLP’s Cleveland, Ohio office, at (216) 298-9000. This news will also be discussed in the Tax Credit Tuesday podcast on August 24.

BILL WOULD ALLOW NMTCs TO OFFSET ALTERNATIVE MINIMUM TAX

WASHINGTON, D.C. - July 28, 2010

Rep. Sander M. Levin, D-Mich., chairman of the Ways and Means Committee, tody announced the introduction of H.R. 5893, the Investing in American Jobs and Closing Tax Loopholes Act of 2010. The bill includes a provision to allow new markets tax credits (NMTCs) to be claimed against the alternative minimum tax with respect to qualified investments made between March 15, 2010 and January 1, 2012. It also extends the Build America Bonds program for two years.

Michael Novogradac, CPA, will discuss the bill in more detail in the Tax Credit Tuesday podcast on August 3. In the meantime, a summary of the legislative text and the estimated revenue effects are available at Novogradac & Company LLP’s New Markets Tax Credit Resource Center.

COMMENTS INVITED ON CDFI/CDE PROJECT PROFILE FORM

WASHINGTON, D.C. - July 27, 2010

The Community Development Financial Institutions (CDFI) Fund today invited comments on its CDFI/CDE Project Profile web form. The form allows CDFIs and community development entities (CDEs) to share stories of projects financed by the CDFI Fund’s programs. For clarification and to reflect new programs it administers, the CDFI Fund has also proposed additional narrative questions, clarifying language and program check boxes. Written comments should be submitted to the CDFI Fund on or before September 27.

2010 NMTC APPLICANTS REMINDED OF ELIGIBILITY DEADLINE

WASHINGTON, D.C. - July 21, 2010

Organizations that applied for the 8th round of new markets tax credits (NMTCs) and that have previously received an NMTC allocation (or whose affiliates have previously received an NMTC allocation) are reminded of today’s deadline to meet the qualified equity investment (QEI) threshold. In order to be eligible to apply for an allocation of NMTC authority in the 2010 round, applicants must have issued a requisite minimum amount of QEIs from their prior allocation(s). A complete description of the issuance thresholds can be found in section III of the notice of allocation availability (NOAA). Applicants are also reminded that the CDFI Fund will only consider as “issued” those QEIs that have been recorded and finalized (as opposed to listed as “pending”) in the CDFI Fund’s Allocation Tracking System.

Questions about the QEI threshold can be directed to Owen Gray, CPA, at (415) 356-8000.

Invest in your future, join applicants, allocatees and other NMTC professionals at the New Markets Tax Credit Investors Conference on October 20-21, 2010 in Chicago, Ill. 

LAWMAKERS PROPOSE SPECIAL NMTC ALLOCATION FOR GULF COAST

WASHINGTON, D.C. - July 6, 2010

Last week, Sen. Mary Landrieu, D-La., and a bipartisan group of lawmakers announced a package of tax incentives to provide relief for struggling small businesses hit hard by the oil spill, to create jobs and give a boost to travel and tourism along the Gulf Coast. Sen. Landrieu joined Sen. Bill Nelson, D-Fla., Sen. Roger Wicker, R-Miss., Sen. George LeMieux, R-Fla., and Sen. David Vitter, R-La., in signing a letter to Senate Finance Committee leadership urging them to consider quickly enacting the package. The proposal would provide a special allocation of new markets tax credits (NMTCs) for the oil spill recovery zone. The senators say that—similar to allocations of NMTC authority that were made following hurricanes Katrina and Rita—a special allocation of NMTCs, spread over a 2-year period, should be made to the oil spill recovery zone to contribute to the region's economic recovery.

IRS INVITES PUBLIC COMMENT ON NMTC RECAPTURE EVENT FORM

WASHINGTON, D.C. - July 1, 2010

The Internal Revenue Service, as part of the Treasury Department’s continuing effort to reduce paperwork and respondent burden, today invited public comments concerning Form 8874-B, Notice of Recapture Event for New Markets Credit. There are no changes being made to the form at this time. Written comments should be received on or before August 30, 2010 to be assured of consideration.

CDFI INVITES COMMENTS ON CAPITAL MAGNET FUND APPLICATION

WASHINGTON, D.C. - June 30, 2010

The Community Development Financial Institutions (CDFI) Fund today invited comments concerning the Capital Magnet Fund (CMF) application. The purpose of the CMF is to competitively award grants to certified CDFIs and qualified nonprofit housing organizations to finance affordable housing and related community development projects. Written comments should be received on or before August 30, 2010 to be assured of consideration.

TAX EXTENDERS BILL DEFEATED IN SENATE

WASHINGTON, D.C. - June 25, 2010

The Senate yesterday failed to pass H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, also known as the tax extenders bill. The bill was defeated 57 to 41, three votes short of the majority it needed to pass. The bill would have extended the New Markets Tax Credit (NMTC) program for one year and allow the NMTC to offset the alternative minimum tax with respect to qualified investments made between March 15, 2010 and January 1, 2012. It would also have extended the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program and made Gulf Opportunity (GO) Zone LIHTCs and Disaster LIHTCs eligible for the program. Reports indicate that Sen. Harry Reid will set aside the tax extender bill for now and instead concentrate on the small business tax bill.

Tune in to the Tax Credit Tuesday podcast on June 29 to hear what the next steps may be for the extenders package.

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