Breaking News

BILL INTRODUCED TO INCREASE NMTC-ELIGIBLE CENSUS TRACTS

WASHINGTON, D.C.– May 14, 2012

Rep. Edolphus Towns, D-N.Y., last week introduced H.R. 5718 to revise the new markets tax credit (NMTC) rules for census tracts with low populations. Under the proposed legislation, a census tract with a population of less than 2,000 would be treated as a low-income community as long as it is contiguous to one or more designated low-income communities and meets certain other criteria. H.R. 5718 was referred to the Ways and Means Committee.

Tune in to next week’s Tax Credit Tuesday Podcast to hear Michael J. Novogradac, CPA, discuss the potential effects such a revision to the NMTC rules could have on program eligibility, and learn even more about all the proposed changes to the NMTC program at the Spring New Markets Tax Credit Conference, June 7-8, 2012 in Washington, D.C.

CDFI FUND UPDATES NMTC PROGRAM ELIGIBILITY CRITERIA

WASHINGTON, D.C.– May 1, 2012

The Community Development Financial Institutions Fund (CDFI Fund) today published updated New Markets Tax Credit (NMTC) Program eligibility criteria based on the 2006-2010 American Community Survey (ACS). In its announcement the CDFI Fund says it recognizes that community development entities (CDEs) may have already begun to structure potential qualified low-income community investments (QLICIs) based on the 2000 census data; as such, the CDFI Fund will allow current NMTC allocatees to use either 2000 census data or 2006-2010 ACS data applied to the 2010 census tracts to qualify QLICIs closed between May 1, 2012 and June 30, 2013. Additional guidance on the transition period can be found in this NMTC Census Data Transition FAQs document published by the CDFI Fund.

Novogradac & Company LLP is currently updating the NMTC Qualifying Census Tracts Mapping Tool to include this updated eligibility data. Subscribers to Novogradac & Company's free Industry Alert E-mail service will receive an e-mail announcement when the update has been completed.

Questions about the updated NMTC eligibility data and the transition period may be directed to Brad Elphick, CPA, at brad.elphick@novoco.com or (678) 867-2333.

GAO RELEASES REPORT ON USE OF NMTC IN METRO & NON-METRO AREAS

WASHINGTON, D.C.– April 26, 2012

The Government Accountability Office (GAO) today released a report that addresses the use of new markets tax credits (NMTCs) in rural and urban areas. The GAO found that the NMTC program’s policies and procedures help ensure the proportionality of metropolitan and nonmetropolitan awards and allocations. From calendar years 2008 through 2011, recipients committed to deploy more than $3 billion, or 20 percent of total investments, in nonmetropolitan areas. In 2010, that increased to 21 percent.

Michael J. Novogradac, CPA, will discuss the report during the May 1 Tax Credit Tuesday podcast and the use of NMTCs in rural and urban areas are sure to be popular discussion topics at the Spring New Markets Tax Credit Conference, June 7-8 in Washington, D.C.

BILL TO EXPAND OHIO NMTC PROGRAM INTRODUCED

COLUMBUS, Ohio – April 13, 2012

Ohio State Sens. Bill Beagle and Charleta Tavares yesterday introduced S.B. 327 to increase the amount of state new markets tax credits (NMTCs) that may be claimed. The bill would raise the program’s annual cap from $10 million to $50 million. S.B. 327 also provides for a six-month cure period for noncompliant entities and would allow investments in businesses that derive 15 percent or more of their annual revenue from real estate transactions.

CDFI FUND POSTS PUBLIC COMMENTS ON NMTC PROGRAM

WASHINGTON, D.C. - April 6, 2012

The Community Development Financial Institutions (CDFI) Fund today posted to its web site comments submitted in response to its Request for Public Comment regarding the New Markets Tax Credit (NMTC) program. The New Markets Tax Credit Working Group’s comment letter was one of 19 responses submitted regarding topics such as census tract eligibility and commitment to areas of higher distress, treatment of certain businesses, community accountability, transaction costs, evaluation of financial products and use of other federally subsidized financing in conjunction with NMTCs.

Learn more about suggested changes to the NMTC program by attending the Spring New Markets Tax Credit Conference, June 7-8, 2012 in Washington, D.C.

FLORIDA RAISES ANNUAL, AGGREGATE NMTC CAPS

TALLAHASSEE, Fla. - April 2, 2012

Florida Gov. Rick Scott last week signed H.B. 7087 to increase the amount of credits available under the state’s New Markets Development Program (NMDP). The bill increases the amount of credits available under the program to $163.8 million, and sets a yearly cap of $33.6 million. Click here for more information about state NMTC programs.

News Archives