WASHINGTON – March 7, 2014
A group of more than 1,400 businesses, investors, nonprofit organizations and community leaders yesterday sent letters to the House and Senate tax-writing committees, urging legislators to extend the New Markets Tax Credit (NMTC) program. The letters describe the NMTC as an effective community development tool that has directly created more than 550,000 jobs and leveraged $60 billion in capital investment since 2003.
WASHINGTON – March 4, 2014
In its proposed budget for fiscal year (FY) 2015, the Obama administration proposes permanently reauthorizing the New Markets Tax Credit (NMTC) program in 2015 and requests $5 billion of allocation authority per year, as well as authority to offset alternative minimum tax (AMT) liability. The budget also proposes a new Manufacturing Communities Tax Credit (MCTC), with $2 billion in tax credit authority in each of three years through 2017. The budget would also extend the CDFI Bond Guarantee program’s authorization by one year, through FY 2015, at a $1 billion guarantee level.
WASHINGTON – Feb. 27, 2014
The Community Development Financial Institutions (CDFI) Fund announced today that it will only award Calendar Year (CY) 2013 new markets tax credit allocation authority in the amount of $3.5 billion during the current application round. It will not award CY 2014 allocation authority at this time. The CDFI Fund has amended its July 29, 2013 Notice of Allocation Authority (NOAA) because Congress has not authorized allocation authority for CY 2014. The CDFI Fund said that it anticipates making CY 2013 awards in late spring. The CDFI Fund plans to publish the amended NOAA in the Federal Register next week.
Tune into the March 4 Tax Credit Tuesday podcast to hear more about the change.
WASHINGTON – Feb. 26, 2014
Ways and Means Chairman Dave Camp, R-Mich., today released a draft tax reform proposal that would repeal the historic rehabilitation tax credit (HTC) and the renewable energy investment tax credit (ITC) and production tax credit (PTC). The draft does not include any reference to the new markets tax credit (NMTC).
The proposal would retain the low-income housing tax credit (LIHTC) in the revised tax code but would make several changes. Under the proposal, state and local housing authorities would allocate qualified basis, rather than tax credits. The proposed annual amount of allocable basis for each state would be equal to $31.20 multiplied by the state’s population, with a minimum annual amount of $36,300,000. In addition, the draft calls for including repealing the 4 percent credit, extending the credit period to 15 years from 10, repealing the increased basis rule for high-cost and difficult development areas, revising the general-public-use requirement to provide occupancy preferences only for individuals with special needs and veterans, and repealing the requirement that states include the energy efficiency and historic nature of the development in their selection criteria.
Novogradac & Company is developing a detailed analysis of the proposal, so stay tuned.
WASHINGTON – Feb. 11, 2014
The Community Development Financial Institutions (CDFI) Fund is soliciting comments in regards to the Secondary Loan Monitoring Report, Financial Condition Monitoring Report and Program Impact Monitoring Report for the CDFI Bond Guarantee Program. The proposed reporting forms will aid the Department of the Treasury’s review and impact analysis of the use of bond proceeds in underserved communities and support the CDFI Fund in managing portfolio risks and performance. Comments must be received by the CDFI Fund on or before April 14, 2014.
WASHINGTON – Feb. 4, 2014
Last week, Rep. Richard E. Neal, D-Mass., introduced the Invest in United States Act of 2014. Among other things, H.R. 3939 would permanently extend the New Markets Tax Credit program, with an annual allocation amount of $5 billion, indexed for inflation. The bill has been referred to the House Committees on Ways and Means, Transportation and Infrastructure, and Education and the Workforce.
Tune in to the Feb. 11 Tax Credit Tuesday podcast to hear more about this bill.
WASHINGTON – Feb. 4, 2014
The Community Development Financial Institutions (CDFI) Fund today released responses to its request for public comment on the annual Community Investment Impact System (CIIS) required from participants in the CDFI program, the Native American CDFI Assistance (NACA) program or the New Markets Tax Credit (NMTC) program. CIIS includes quantitative information for CDFIs and community development entities (CDEs) and is used to assess awardees’ activities and overall program compliance. Comments were invited on all aspects of the information collection, including its efficiency and effectiveness. Respondents’ suggestions include improving the geocoding system; clarifying multi-CDE reporting guidance; updating the CIIS hardware and software systems; and eliminating data fields for non-essential or optional information.
WASHINGTON – Jan. 14, 2014
Lawmakers yesterday released the fiscal year 2014 consolidated appropriations bill that will set discretionary funding for the federal government through Sept. 30. The bill meets the terms set by the Ryan-Murray budget agreement, providing $1.012 trillion for the operation of the federal government. According to a joint explanatory statement that explains funding for the Treasury Department and related agencies, the bill provides $226 million for the Community Development Financial Institutions (CDFI) Fund, including to $24.6 million for administrative expenses, including administration of the New Markets Tax Credit (NMTC) program; $22, million for the Healthy Food Financing Initiative; and $750 million for the CDFI Bond Guarantee program.
WASHINGTON – Jan. 13, 2014
The Community Development Financial Institutions (CDFI) Fund will accept comments on the new markets tax credit (NMTC) allocation application, in anticipation of the program being extended beyond calendar year 2013. Comments are invited on all aspects of the application, including ways to minimize the time and cost burden for applicants. The request for comments will be published in tomorrow’s Federal Register and the CDFI Fund will accept comments until March 17, 2014.
To hear the latest insights about a potential NMTC extension and other key community development issues, join Novogradac & Company at the Novogradac New Markets Tax Credit Conference in San Diego on Jan. 23-24.
WASHINGTON – Jan. 9, 2014
Sen. Sherrod Brown, D-Ohio, this week introduced S. 1896, the Manufacturing Communities Investment Act, which would extend the new markets tax credit (NMTC) through 2016 and would provide designated allocations for areas affected by a decline in manufacturing. The bill would reauthorize the NMTC, which expired on Dec. 31, 2013, and would increase the annual NMTC allocation from $3.5 billion to $5 billion in calendar years 2014, 2015 and 2016. It would also authorize an additional $1 billion for investments in communities affected by major manufacturing job losses. S. 1896 was referred to the Senate Finance Committee and is the companion bill to H.R. 3735, which Reps. John Carney, D-Del., and Steve Stivers, R-Ohio, introduced in December.
To discuss the latest NMTC news, join Novogradac & Company at the Novogradac New Markets Tax Credit Conference in San Diego on Jan. 23-24.
WASHINGTON – Dec. 30, 2013
Rep. Jim Costa, D-Calif., last week introduced H.R. 3809, which would allow certain census tracts for which information is not available to be treated as low-income communities for purposes of the new markets tax credit (NMTC). The bill would qualify for the NMTC program census tracts that are adjacent to two or more low-income communities and for which the Treasury Secretary does not have information indicating that the tracts are not low-income communities. H.R. 3809 was referred to the House Committee on Ways and Means. Reps. Costa, Jeff Denham, R-Calif., and Dennis Cardoza, D-Calif., introduced the same proposal in the 112th Congress as H.R. 2740.
WASHINGTON – Dec. 11, 2013
The Community Development Financial Institutions (CDFI) Fund today launched the latest version of its CDFI Information Mapping System (CIMS3). The web-based tool allows organizations interested in getting certified as a CDFI or community development entity (CDE), or those interested in applying to one of the CDFI Fund’s award programs, to plot their eligible service areas and investments. The CDFI Fund has also provided CDEs that have new markets tax credit allocation authority with guidance on how to transition from the Federal Financial Examination Council Geocoding System to CIMS3. More detailed information is available for CDEs looking to transition to CIMS3 in a frequently asked questions document on the CDFI Fund’s website.
WASHINGTON – Dec. 10, 2013
Regulators today released a final draft of the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act commonly referred to as the Volcker Rule. The Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board today unanimously approved the rule. The so-called Volcker Rule places certain prohibitions and restrictions on the ability of a banking entity and non-bank financial company to make certain kinds of equity investments, and thus could have significant implications for the tax credit equity market.
To hear about the rule’s significance to the low-income housing tax credit (LIHTC), new markets tax credit (NMTC) and renewable energy tax credits, tune in to the Dec. 17 Tax Credit Tuesday podcast.
WASHINGTON – Dec. 4, 2013
Rep. Brian Higgins, D-N.Y., today called on the House of Representatives to permanently extend the New Markets Tax Credit (NMTC) program prior to its Dec. 31, 2013 expiration date. He said that NMTC investments have leveraged more than $180 million for projects in the city of Buffalo, N.Y.
WASHINGTON – Dec. 3, 2013
The Community Development Financial Institutions (CDFI) Fund announced today that the third version of its CDFI Information Mapping System (CIMS3) is scheduled to be launched on Dec. 11. The release of CIMS3, originally scheduled for Nov. 1, was delayed because of technical issues that have since been resolved. Transition to the new mapping system will begin Dec. 4, at which time users will be able to access existing maps but won’t be able to create or save any new maps or data. The CDFI Fund said it will release more information about CIMS3 next week.
Tune into the Dec. 10 Tax Credit Tuesday podcast to hear more about the update.
WASHINGTON – Nov. 18, 2013
The Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency on Nov. 15 released the final revisions to "Interagency Questions and Answers Regarding Community Reinvestment," which the agencies use to provide additional guidance on Community Reinvestment Act (CRA) regulations. The agencies updated five existing questions and added two new questions. The questions address statewide and regional impact, nationwide investments, community development services, proportional investments and lending performance.
Tune into the Nov. 19 Tax Credit Tuesday podcast to hear more about the guidance.
WASHINGTON – Nov. 15, 2013
The Community Development Financial Institutions (CDFI) Fund today released a report by the Urban Institute (UI) about the first four years of the New Markets Tax Credit program. UI found that from 2002 through 2006 the program operated as intended, attracted private capital to low-income communities, financed a diverse range of community and economic development projects, added to local tax bases, created and retained jobs in low-income areas and supported small businesses. The report also suggested improvements to secondary data collection, such as socioeconomic characteristics, the investment cost of job creation, credit pricing and the influence of the time value of money. The CDFI Fund commissioned the report, which is the first evaluation of the first four years of the program.