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BIPARTISAN HURRICANE SANDY TAX RELIEF BILL ANNOUNCED

WASHINGTON, D.C.– May 23, 2013

A bipartisan coalition of lawmakers announced that they will introduce the Hurricane Sandy Tax Relief Act of 2013 to provide tax relief for victims of Hurricane Sandy in areas designated as federal disaster areas by the president. Reps. Bill Pascrell, Jr., D-N.J., Joseph Crowley, D-N.Y., Rodney Frelinghuysen, R-N.J., Michael Grimm, R-N.Y., John Larson, D-Conn., Frank LoBiondo, R-N.J., Charles Rangel, D-N.Y., Tom Reed, R-N.Y., and Carolyn McCarthy, D-N.Y., will propose a tax package that includes supplemental new markets tax credit (NMTC) allocation authority for investments in community development entities (CDEs) serving Hurricane Sandy disaster areas. The legislation is modeled after a similar bill passed into law in the wake of Hurricane Katrina, and the text of the bill will be posted to www.newmarketscredits.com as soon as it becomes available.
 
Learn more about this legislation and other current developments at the Novogradac Spring New Markets Tax Credit Conference, June 6-7 in Washington, D.C.

CDFI FUND RELEASES 2012 ALLOCATION AGREEMENT TEMPLATE DRAFT

WASHINGTON, D.C.– May 2, 2013

The Community Development Financial Institutions (CDFI) Fund has released the draft 2012 allocation agreement template. The document contains two significant changes from the previous draft: a change to the definition of a non-real estate qualified active low-income community business (QALICB) and a new fee disclosure requirement, for which the CDFI Fund has also provided guidance. The template for the allocation agreement provides boilerplate provisions of the terms and conditions that community development entities (CDEs) enter into with the CDFI Fund. The exact terms and conditions of each new markets tax credit (NMTC) allocation is set forth in the individualized agreements executed by the CDFI Fund and each allocatee.

The New Markets Tax Credit Working Group will discuss the changes during its next conference call May 14. If you’d like to join the group and be part of the conversation, please contact Cyle Reissig, CPA, at 678-867-2333 or cyle.reissig@novoco.com.

CDFI FUND AWARDS $3.5 BILLION IN NMTC ALLOCATION AUTHORITY

WASHINGTON, D.C.– April 24, 2013

Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri, Community Development Financial Institutions (CDFI) Fund Director Donna Gambrell, Sen. Charles Schumer, D-N.Y., and Enterprise Community Investment Inc. President and CEO Charlie Werhane, on a press conference call today announced that 85 community development entities (CDEs) have been selected to receive $3.5 billion in tax credits under the tenth round of the New Markets Tax Credit (NMTC) program. The 85 organizations receiving awards were selected from a pool of 282 applicants that requested more than $21.9 billion. A list of the organizations selected and additional information about today’s announcement can be found on the CDFI Fund's web site.

Links to information from all 10 NMTC allocation rounds to date can also be found online at www.newmarketscredits.com under Allocations by Year.

Join Novogradac & Company at the Spring New Markets Tax Credit Conference in Washington, D.C, June 6-7, to discuss the latest allocation round and what lies ahead for the NMTC program.

MISSOURI SENATE PASSES NMTC EXTENSION BILL

JEFFERSON CITY, MO.– April 17, 2013

The Missouri Senate yesterday passed S.B. 112, which would reauthorize the state new markets tax credit (NMTC) for six years, increase the credit from 39 percent to 58 percent of qualified equity investments and reduce the $25 million fiscal year state NMTC cap to $15 million. The bill now moves to the Missouri House for consideration.

U.S. REPRESENTATIVES URGE SUPPORT FOR HURRICANE SANDY TAX RELIEF BILL

WASHINGTON, D.C.– April 15, 2013

Today, a group of 32 U.S. representatives sent House Speaker John Boehner a letter urging support for bipartisan tax relief legislation that would aid victims of Hurricane Sandy. Rep. Bill Pascrell Jr., D-N.J., introduced during the 112th Congress the Hurricane Sandy Tax Relief Act of 2012 (H.R. 6683), part of which included a temporary, additional $250 million in new markets tax credit allocation authority for investments in areas affected by Hurricane Sandy.

Tune in to the April 23 Tax Credit Tuesday podcast to learn more .

ADMINISTRATION’S BUDGET PROPOSES MAKING NMTC PERMANENT

WASHINGTON, D.C.– April 10, 2013

In its proposed budget for fiscal year 2014 (FY) the Obama administration proposes to permanently reauthorize the new markets tax credit (NMTC) in 2014, at a level of $5 billion of allocation authority per year, and proposes to allow the NMTC 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 2016 to support investments in communities affected by military base closures or mass layoffs. In addition, the budget proposes extending the Community Development Institutions Fund's Bond Guarantee Program by one year, through FY 2015.

To discuss the prospects for a permanent NMTC, join Novogradac & Company at the Spring New Markets Tax Credit Conference in Washington, D.C, June 6-7.

NMTC MAPPING TOOL UPDATED WITH NEW CONGRESSIONAL DISTRICTS

SAN FRANCISCO– April 2, 2013

Novogradac & Company's free New Markets Tax Credit (NMTC) Mapping Tool has been updated to reflect the 113th congressional district boundaries as determined by the 2010 census. The NMTC Mapping Tool has also been updated with revised HUBZone data; HUBZones are one of the secondary criteria used to determine severe distress for the purposes of the NMTC.

Among other things, the NMTC Mapping Tool allows users to determine if a location meets various distress criteria included in the NMTC application. The online tool also includes thousands of data points representing billions of dollars of low-income community investments made from the beginning of the program through 2010. The tool can be searched by congressional district, address, city, county, state or ZIP code to display NMTC investments. These various search options are helpful when educating members of Congress about the types of transactions that are located within their districts.

Join Novogradac & Company at the Spring New Markets Tax Credit Conference in Washington, D.C, June 6-7, to discuss current NMTC issues and development opportunities.

BILL TO CREATE CALIF. STATE NMTC REFERRED TO COMMITTEE

SACRAMENTO, CALIF.– March 29, 2013

Last week, Calif. AB 305 was referred to the Jobs and Economic Development Committee. AB 305, introduced by Rep. V. Manuel Perez, proposes the creation of a state new markets tax credit (NMTC). The measure would allow up to $30 million in tax credits to be allocated each year; total state NMTC allocations would be capped at $200 million between Jan. 1, 2013 and Jan. 1, 2020. The text of the bill also suggests that the state consider prioritizing a portion of the California NMTC to encourage private investment in areas that face multiple challenges in attracting investment capital.

CDFI FUND INVITES COMMENTS ON CERTIFICATION OF MATERIAL EVENTS FORM

WASHINGTON, D.C– March 28, 2013

The Community Development Financial Institutions (CDFI) Fund today invited public comment on the Certification of Material Events Form. According to the notice, the revised form will capture information related to community development entity (CDE)/new markets tax credit (NMTC) material events, as well as CDFI material events, and will provide a more comprehensive list of potential material events that CDEs and CDFIs should report to the CDFI Fund. The notice also says this information will allow the CDFI Fund to more accurately manage the material events review process and monitor the effects of material events on certification or compliance status.

BILL PROPOSES TO EXTEND MISSOURI STATE NMTC

JEFFERSON CITY, MO. – Feb. 28, 2013

Missouri State Sen. Scott Rupp proposed a bill that would reauthorize the Missouri state new markets tax credit for six years and would increase the credit from 39 percent to 58 percent of qualified equity investments. Upon introduction, S.B. 112 was referred to the Senate Jobs, Economic Development and Local Government committee and scheduled for a hearing on Feb. 27. That hearing was cancelled yesterday because of inclement weather.

Tune in to the March 5 Tax Credit Tuesday podcast to hear more about the bill.

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