WASHINGTON – June 24, 2016
A bill introduced this week would amend the federal tax code to allow income tax exemptions on capital contributions from state and local governments to partnerships and limited liability companies treated as partnerships. The Preserving Investment in Needy Neighborhoods (PINN) Act, sponsored by Reps. Pat Tiberi, R-Ohio, Peter Roskam, R-Ill., and Danny Davis, D-Ill., would put partnerships and LLCs on the same ground as corporations by making grants and other government-provided capital exempt from tax.
WASHINGTON – June 24, 2016
The House Republicans Tax Reform Task Force today released a blueprint and two-page summary calling for three individual tax brackets and the reduction of individual and business tax rates. The blueprint made no mention of the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic tax credit (HTC) and the renewable energy investment tax credit (ITC) and production tax credit (PTC), but said that it “generally will eliminate special-interest deductions and credits in favor of providing lower tax rates.” The House Ways and Means Committee is expected to turn the blueprint into legislative language before Jan. 20, 2017, when the next president is inaugurated.
WASHINGTON – June 6, 2016
In New Markets Tax Credit Progress Report 2016, released last week, the New Markets Tax Credit (NMTC) Coalition found that the NMTC created nearly 45,000 jobs last year. The annual report surveyed 65 community development entities (CDEs) on their 2015 NMTC activity. Respondents reported that $1.6 billion in qualified equity investments (QEIs) were made last year and 194 businesses and projects received NMTC financing, which resulted in nearly 45,000 jobs created. The NMTC Coalition said that its findings illustrate how the NMTC serves as an effective tool for spurring investments in economically distressed neighborhoods.
WASHINGTON – June 3, 2016
The Treasury Department today published a Federal Register notice inviting comments concerning the Capital Magnet Fund application and annual report. The Community Development Financial Institutions (CDFI) Fund provides competitively awarded grants through the Capital Magnet Fund to finance affordable housing and economic development activities. Specific questions in the Federal Register notice include whether the information requested in the Capital Magnet Fund application is appropriate to financing affordable housing and economic development activities, and what sources of data or indicators could the CDFI Fund use to identify areas of high housing needs or areas of economic distress. Comments are due Aug. 2.
LINCOLN, Neb. – April 21, 2016
Nebraska Gov. Pete Ricketts signed legislation Monday to extend the state’s New Markets Job Growth Investment Act through the end of 2022. The program began in 2012 with a sunset date of Dec. 31, 2019. The Nebraska credit has an annual state cap of $15 million and mirrors the federal new markets tax credit in structure.
WASHINGTON – April 21, 2016
The Community Development Financial Institutions (CDFI) Fund today announced that under the fiscal year (FY) 2016 round of the Capital Magnet Fund, 125 applicants requested an aggregate $609.1 million in awards, far exceeding the $93.5 million available. The CDFI Fund also announced that it would forward all eligible applicants to the external qualitative review stage, allowing all applicants to receive a full review. The Capital Magnet Fund offers competitive grants to CDFIs and nonprofit affordable housing providers to finance affordable housing and community revitalization efforts that serve low-income populations.
WASHINGTON – April 18, 2016
The Community Development Financial Institutions (CDFI) Fund today amended its Notice of Allocation Availability (NOAA) to make $7 billion in allocation authority available for the combined calendar year (CY) 2015 and 2016 rounds of the New Markets Tax Credit (NMTC) program. The Protecting Americans from Tax Hikes (PATH) Act of 2015 in December extended authorization for the NMTC program for five calendar years (CY 2015 through CY 2019) with $3.5 billion in annual allocation authority. The CDFI Fund said combining the CY 2015 and 2016 allocation rounds will allow it to announce the allocation of NMTCs in the year for which they are authorized, as set forth in the PATH Act. In conjunction with the announcement, the CDFI Fund also released a Frequently Asked Questions document.
Tune into the April 26 Tax Credit Tuesday podcast for more information.
WASHINGTON – March 10, 2016
The Community Development Financial Institutions (CDFI) Fund today announced there will be $93 million available in awards under the fiscal year (FY) 2016 round of the Capital Magnet Fund. The CDFI Fund awards competitive grants to CDFIs and qualified nonprofit housing organizations to finance affordable housing, economic development activities and community service facilities. The deadline to apply for FY 2016 Capital Magnet Fund grants is March 16 for submissions through Grants.gov and March 30 for submissions through the CDFI Fund’s Awards Management Information System (AMIS).
WASHINGTON – March 4, 2016
The Internal Revenue Service (IRS) today released Notice 2016-23, requesting comments on the new partnership audit regime enacted in the Bipartisan Budget Act of 2015.The new regime for auditing all partnerships will be effective for tax years beginning after Dec. 31, 2017. Some partnerships may elect into the regime prior to that date. The provisions are intended to make the IRS partnership audit process more efficient by eliminating multi-tier audits and determinations at the partner level. Comments on the new rules are due April 15.
To learn more about the implications of the new provisions on tax credit partnerships read the Notes from Novogradac blog, and purchase a recording of the Novogradac New Rules for IRS Audits of Partnerships Webinar.
WASHINGTON – March 3, 2016
The Community Development Financial Institutions (CDFI) Fund today launched a new mandatory annual certification report for all community development financial institutions (CDFIs). The annual certification report, which must be completed in the CDFI Fund’s Awards Management Information System (AMIS), allows the CDFI Fund to assess certified CDFIs’ compliance with certification rules. The CDFI Fund has posted instructions for completing the annual certification report on its certification page.
WASHINGTON – Feb. 26, 2016
The Community Development Financial Institutions (CDFI) Fund today released an updated frequently asked questions (FAQ) document for fiscal year (FY) 2016 applicants of the Capital Magnet Fund. Updated topics include affordability requirements, using the Capital Magnet Fund with other CDFI Fund programs, providing Capital Magnet Fund funds to limited liability corporations or limited partnerships and other topics. The deadline for Capital Magnet Fund applications is March 16 for submissions through www.grants.gov and March 30 for submissions through the CDFI Fund’s Award Management Information System (AMIS).
WASHINGTON – Feb. 9, 2016
President Barack Obama today released his $4.2 trillion fiscal year (FY) 2017 budget, the final budget request of his presidency. For the U.S. Department of Housing and Urban Development (HUD), the budget requests $48.9 billion in gross discretionary funding, a 15 percent increase over FY 2016. The budget also calls for a new $11 billion in mandatory spending over the next 10 years for programs to house homeless families, including $8.8 billion for housing choice vouchers and $2.2 billion for short-term assistance.
The budget proposes changes to reform and expand the Low-Income Housing Tax Credit (LIHTC) program, including allowing states to convert up to 18 percent of each state’s private-activity bond volume cap into additional LIHTC authority; allowing the income-average rule for LIHTC eligibility; adding to the selection criteria for LIHTC allocation the preservation of federally assisted affordable housing; making affirmatively furthering fair housing an explicit preference in qualified allocation plans (QAPs); allowing HUD to designate as a qualified census tract (QCT) any census tract that meets certain criteria for the prevalence of poverty or low-income households; and adding protection for victims of domestic violence as a mandatory provision of the long-term-use agreement. The proposal would also modify and permanently extend the new markets tax credit (NMTC) at $5 billion and the renewable energy investment tax credit (ITC) and production tax credit (PTC).
COLUMBIA, Md. – Feb. 4, 2016
Enterprise Community Partners Inc., a national nonprofit organization, today proposed several affordable housing and economic development policies to strengthen communities in, “An Investment Opportunity: A Bold New Vision for Housing Policy in the U.S.” The proposals include gradually doubling annual allocations of the low-income housing tax credit (LIHTCs), expanding funding for the Section 8 program, promoting mixed-income developments and making permanent and significantly expanding the new markets tax credit (NMTC). Enterprise also recommended creating a new federal tax credit for private investments into community development financial institutions (CDFIs) and other community investment entities.
WASHINGTON– Feb. 2, 2016
The Community Development Financial Institutions (CDFI) Fund today opened the fiscal year (FY) 2016 funding round for the Capital Magnet Fund. The Capital Magnet Fund is a competitive grant program through which CDFIs and qualified nonprofit housing organizations receive awards to finance affordable housing and economic development activities in underserved areas. The CDFI Fund estimates that about $80 million will be available through the Capital Magnet Fund’s FY 2016 round. The deadline to apply is March 16 for submissions through Grants.gov or March 30 for submissions through the CDFI Fund’s Award Management Information System (AMIS).
WASHINGTON– Feb. 2, 2016
The Federal Housing Administration (FHA) today released an updated Multifamily Accelerated Processing (MAP) Guide that combines all FHA multifamily underwriting guidance into one document. The updated MAP Guide includes revised chapters that discuss the low-income housing tax credit (LIHTC) and other tax credits, as well as master lease structuring to facilitate the use of new markets tax credits (NMTCs) and historic tax credits (HTCs). The U.S. Department of Housing and Urban Development (HUD) said the revised MAP Guide is intended to streamline loan application approvals and to promote consistency across all HUD processing offices. Requirements are effective May 28.
WASHINGTON– Jan. 25, 2016
The Community Development Financial Institutions (CDFI) Fund today announced that it received 238 applications from community development entities (CDEs) requesting a combined $17.6 billion in allocation authority under the 2015 round of the New Markets Tax Credit (NMTC) program. The requested amount is five times the $3.5 billion in authority available for the 2015 round. Applicants in the 13th round are headquartered in 43 states, the District of Columbia, Puerto Rico and Guam.
Through the first 12 rounds of the NMTC program, the CDFI Fund has made 912 awards totaling $43.5 billion in tax credit allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion for Gulf Opportunity Zones.
WASHINGTON– Jan. 5, 2016
The Community Development Financial Institutions (CDFI) Fund today opened the fiscal year (FY) 2016 application period for its bond guarantee program in anticipation of the publication of a Notice of Guarantee Authority (NOGA) in the Federal Register later this week.
WASHINGTON– Dec. 18, 2015
President Barack Obama today signed the $1.1 trillion Consolidated Appropriations Act of 2016 and the tax-extending, $680 billion, Protecting Americans From Tax Hikes (PATH) Act of 2015. The bills include provisions to permanently extend the minimum 9 percent low-income housing tax credit (LIHTC), extend the new markets tax credit (NMTC) for five years at $3.5 billion annually through 2019, and extend and gradually phase down the renewable energy investment tax credit (ITC) and production tax credit (PTC) through 2021.
WASHINGTON– Dec. 16, 2015
The House Appropriations Committee today released the $1.1 trillion Consolidated Appropriations Act of 2016. The fiscal year (FY) 2016 omnibus spending bill provides $38.6 billion net spending for the U.S. Department of Housing and Urban Development (HUD), including:
The spending bill also extends the renewable energy production tax credit (PTC) for wind energy through 2016 at prior levels, phasing them out after 2019. The legislation extends the temporary 30 percent solar ITC and the temporary credit for solar residential energy through 2019, then phases the 30 percent investment tax credit (ITC) out after 2021. The House will likely vote on the bill Friday.
In other news, House and Senate leadership yesterday announced the Protecting Americans from Tax Hikes (PATH) Act of 2015, a $650 billion extenders bill that extends or makes permanent several temporary tax provisions. The bill:
The House will consider it on Thursday. The Senate could consider it shortly thereafter on Friday, but if some Senators decide to slow consideration, it could take until Dec. 22 for final passage. The president is expected to sign it. More information about the extenders bill can be found in the section-by-section summary here and on the Notes from Novogradac blog. More information on the omnibus will also be available on the Notes from the Novogradac blog.
WASHINGTON – Dec. 8, 2015
House Ways and Means Committee Chairman Kevin Brady, R-Texas, yesterday proposed an amendment to the Senate amendment to H.R. 34 that would extend through 2016 several temporary tax provisions that expired at the end of calendar year 2014, also known as the “tax extenders.”
The bill would:
The legislation includes technical changes to the partnership audit provision of the Bipartisan Budget Act of 2015, additional tax policy changes and reforms to the IRS. A section-by-section summary can be found here.
Learn more about the extenders proposal on the Notes from Novogradac blog.
WASHINGTON – Dec. 4, 2015
The Community Development Financial Institutions (CDFI) Fund today updated its Frequently Asked Questions (FAQ) document for new markets tax credit (NMTC) compliance. The updated Certification, Compliance and Monitoring FAQ document replaces previous publications of the document by updating, revising and adding questions, including definitions and clarifications. More than 20 items have been updated or added since the original publication.
WASHINGTON – Nov. 2, 2015
President Barack Obama today signed the Bipartisan Budget Act of 2015. The legislation suspends the debt limit through March 2017 and lifts spending limits through September 2017. The deal raises sequestration caps and increases discretionary spending by about $50 billion in fiscal year (FY) 2016 and $30 billion in FY 2017, split evenly between defense and domestic spending. Congress passed the legislation last week with votes of 64-35 in the Senate and 266-167 in the House.
Read about the bill’s implications for tax credit partnerships on the Notes from Novogradac blog.
WASHINGTON – Oct. 30, 2015
The Community Development Financial Institutions (CDFI) Fund today updated its NMTC Compliance Monitoring Frequently Asked Questions document. The update provides supplemental guidance on the use of qualified low-income community investments proceeds to pay a debt or equity provider to monetize an asset, and to clarify the guidance’s applicability to the calendar year 2015 new markets tax credit (NMTC) application round. The deadline to submit application questions to the CDFI Fund on the 2015 NMTC allocation round is Dec. 14 at 5 p.m. EST.
For more information about the next NMTC allocation application round, register for the Novogradac 2015 NMTC Application Webinar that will be held Nov. 12, from 1 p.m. to 4 p.m. EST.
WASHINGTON – Oct. 21, 2015
Today’s release of the Community Development Financial Institutions (CDFI) Fund’s calendar year 2015 new markets tax credit (NMTC) application includes a change meant to allow military base realignment and closure (BRAC) sites to qualify for the NMTC more easily. BRAC sites–many of which were closed by the federal government–were added to a list of targeted service areas that help determine qualification for the NMTC. The notice of allocation availability (NOAA) included guidance on the use of qualified low-income community investment (QLICI) proceeds to repay certain debt or equity investments.
WASHINGTON – Oct. 21, 2015
The Community Development Financial Institutions (CDFI) Fund today released the notice of allocation availability (NOAA), opening the next round of competition under the New Markets Tax Credit (NMTC) program. The NOAA makes $5 billion in tax credit authority available under the calendar year (CY) 2015 round, pending congressional authorization. Under the 2015 NOAA, applications are due Dec. 16. Allocation applicants that are not yet certified as community development entities (CDEs) must submit an application for certification as a CDE by Nov. 6 to be eligible for an NMTC allocation. Application information has also been posted online at www.newmarketscredits.com.
WASHINGTON – Sept. 30, 2015
Congress today passed a stopgap spending bill that will keep the federal government funded through Dec. 11. The Senate passed the bill this morning with a vote of 78-20 and the House later approved it 277-151. President Barack Obama is expected to sign the bill today. To avoid a government shutdown, a stopgap spending bill needs to be passed before the start of the 2016 fiscal year (FY) Thursday.
WASHINGTON – Sept. 29, 2015
The Community Development Financial Institutions (CDFI) Fund announced today that it guaranteed nine bond loans worth $327 million in fiscal year (FY) 2015. All bond proceeds provide long-term, fixed-rate capital for projects in low-income and underserved communities. The bond proceeds are provided through the CDFI Bond Guarantee Program, which has now provided $852 million in bond guarantees since it was enacted as part of the Small Business Jobs Act of 2010. The CDFI Bond Program funding expires at the end of the fiscal year Wednesday, although the president’s proposed budget for 2016 includes an extension of the program, subject to reauthorization by Congress.
WASHINGTON – Sept. 28, 2015
The Community Development Financial Institutions (CDFI) Fund today launched its Awards Management Information System (AMIS). The enterprise-wide business system will eventually support all CDFI Fund programs, replacing the myCDFIFund portal. The CDFI Fund is transitioning to AMIS in several stages from today through fall 2016. Available now through AMIS is the community development entity (CDE) certification application, which replaces the former paper-based process. Organizations and users must also begin to manage their profiles using AMIS.
Tune in to the Oct. 6 episode of the Tax Credit Tuesday podcast to learn more.
SAN FRANCISCO – Sept. 22, 2015
The Novogradac Journal of Tax Credits today announced the winners of the 2015 Community Development QLICIs of the Year Awards, which recognize community development entities (CDEs) that made exceptional qualified low-income community investments (QLICIs) in the past year. Awardees were recognized in five categories: Metro, Non-Metro, Operating Business, Real Estate and Small Business. Winners will be honored Oct. 21 at the Novogradac New Markets Tax Credit Conference in Chicago.