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CDFI Fund Releases 10 Years of NMTC Investment Data

WASHINGTON – July 24, 2014

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The Community Development Financial Institutions (CDFI) Fund today released a breakdown of new markets tax credit (NMTC) investments reported to the CDFI Fund through fiscal year (FY) 2012. The data shows that more than $31.1 billion in NMTC investments made between FY 2003 and FY 2012 have revitalized low-income communities. The CDFI Fund found that 57.9 percent of investments were in real estate and leasing activities; 40.1 percent of investments were in operating businesses; and 1.9 percent of investments were in other financing purposes.

Tune in to the Tax Credit Tuesday podcast on July 29 to learn more about how the NMTC has been put to use in low-income communities across the country.

IRS Invites Comments on NMTC Regulations

WASHINGTON – July 14, 2014

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The Internal Revenue Service (IRS) in tomorrow’s Federal Register will publish a notice inviting comments concerning existing final regulation T.D. 9171, New Markets Tax Credits. This regulation finalized the rules relating to the new markets tax credit (NMTC) under Internal Revenue Code 45D and replaced the temporary regulations that expired Dec. 23, 2004. There are no changes proposed to the existing regulation at this time. Written comments are due on or before Sept. 12, 2014.

Live Webinar on Community Reinvestment Act Questions and Answers

WASHINGTON – July 11, 2014

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The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (OCC) announced today that they will host a live interagency webinar regarding revisions to the “Interagency Questions and Answers Regarding Community Reinvestment” and the revised “Large Institutions Community Reinvestment Act Examination Procedures” on July 17at 2 p.m. Eastern. Participants must register by July 17.

CDFI Fund Requests Information for Minority CDE Training

WASHINGTON – June 24, 2014

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The Community Development Financial Institutions (CDFI) Fund today released a request for information (RFI) for new markets tax credit (NMTC) industry  and subject-matter experts to assist in developing minority community development entity (CDE) training and related technical assistance. The training would target CDEs that are minority-controlled nonprofit entities, minority-owned for-profit entities or minority depository institutions (MDIs) and inform them of how they can participate in the NMTC program.  The RFI asks interested vendors to submit capability statements that demonstrate their knowledge and expertise of the NMTC program; familiarity with minority CDEs that primarily serve minority communities; familiarity with federal financial institution regulatory agencies and regulatory processes; familiarity with underserved/low-income communities; and ability to effectively market all training and technical assistance.  Statements must be submitted by July 8.

Tune in to next week’s Tax Credit Tuesday podcast to learn more about the CDFI Fund’s request for information.

Bipartisan Letter Urges NMTC Extension

WASHINGTON – June 24, 2014

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A group of 50 U.S. Representatives yesterday sent a joint letter to Ways and Means Chairman Dave Camp, R-Mich., and Ranking Member Sander Levin, D-Mich., urging them to support an extension of the new markets tax credit (NMTC). Circulated by Reps. Mike Turner, R-Ohio, and Chaka Fattah, D-Pa., the sign-on letter noted that businesses and jobs financed by the NMTC produce enough income tax revenue to offset the cost of the program.

Deadline Extended for NMTC Reauthorization Sign-On Letter

WASHINGTON – June 12, 2014

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The deadline to sign a letter urging House Ways and Means Committee Chairman Dave Camp, R-Mich., and Ranking Member Sandy Levin, D-Mich., to support reauthorization of the new markets tax credit (NMTC)  has been extended to close of business Thursday, June 19. Circulated by Reps. Mike Turner, R-Ohio, and Chaka Fattah, D-Pa., the sign-on letter notes that the NMTC has directly created more than 550,000 jobs and generated $60 billion in capital investment to underserved communities since 2003. As of June 11, the letter had 29 signatories.

Report: NMTC Created More than 54,000 Jobs in 2013

WASHINGTON – June 10, 2014

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The New Markets Tax Credit (NMTC) Coalition today released its 2014 NMTC Progress Report. The report outlines how the NMTC was used and describes the impact it had on economically distressed communities during calendar year 2013, which includes creating more than 54,000 jobs and nearly 2,500 housing units. The report also provides updated investment and transaction information from NMTC allocatee survey respondents for calendar year 2013 and examples of successful projects, among other things.  

CDFI Fund Awards $3.5 Billion in NMTC Allocation Authority

WASHINGTON – June 5, 2014

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The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today announced that 87 community development entities (CDEs) have been selected to receive $3.5 billion in tax credits under the under the calendar year 2013 round of the New Markets Tax Credit (NMTC) program. The 87 CDEs receiving awards were selected from a pool of 310 applicants that requested more than $25.9 billion. The 2013 allocatees are headquartered in 32 different states and the District of Columbia, and they have identified principal service areas that will cover nearly every state in the country and the District of Columbia. 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 11 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 12-13, to discuss the latest allocation round and what lies ahead for the NMTC program.  

CDFI Fund Opens 2014 Bond Guarantee Program Application Period

WASHINGTON – May 9, 2014

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The Community Development Financial Institutions (CDFI) Fund today opened the fiscal year (FY) 2014 application period for the CDFI Bond Guarantee Program in anticipation of the publication of the notice of guarantee authority (NOGA) in the Federal Register on May 13. The NOGA will make up to $750 million in bond guarantee authority available to eligible CDFIs in FY 2014. Under the program, CDFIs will issue federally backed bonds and use the proceeds to extend credit to the CDFI industry for community development projects. For the FY 2014 round, qualified issuer applications must be submitted by June 23 and guarantee applications must be submitted by June 30.

Legislation Would Increase NMTC Allocations to Disaster Areas

WASHINGTON – April 15, 2014

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Last week, a bipartisan group of legislators introduced the National Disaster Tax Relief Act of 2014, which would provide a $500 million annual increase through 2016 in new markets tax credit allocations to federally declared disaster areas in 2012 or 2013. S. 2233 has been referred to the Senate Finance Committee.

Tune in to this afternoon’s Tax Credit Tuesday podcast to learn more about the bill.

Senate Finance Committee Passes Tax Extenders Bill

WASHINGTON – April 3, 2014

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The Senate Finance Committee today passed the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act by voice vote. The bill incorporates modifications released today by Chairman Ron Wyden, D-Ore., including a provision to claw back unused new markets tax credits (NMTCs) and use them to finance a Manufacturing Communities Tax Credit for investments in communities that have faced significant manufacturing job losses.

Bipartisan Bill Introduced to Make NMTC Permanent

WASHINGTON – April 2, 2014

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House Ways & Means Committee Members Jim Gerlach, R-Pa.,  and Richard Neal, D-Mass., today reintroduced bipartisan legislation that would make permanent the new markets tax credit (NMTC). In a statement about the bill’s introduction, the NMTC is credited with creating more than 550,000 jobs and incentivizing more than $60 billion in private investment to strengthen economically-distressed communities. A copy of the bill, H.R. 4365, will be posted at www.newmarketscredits.com as soon as the text becomes available.

Senate Finance Committee to Consider Tax Extenders

WASHINGTON – April 1, 2014

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The Senate Finance Committee will markup legislation on “tax extenders” on Thursday, April 3. The bill, entitled the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, addresses a number of tax provisions that have expired or will expire at the end of this year. Among other things, the legislation would extend for two years important affordable housing and community development provisions. The committee also released a summary of the bill’s provisions and a cost estimate.

The legislation would extend the New Markets Tax Credit (NMTC) program for two years, permitting a maximum annual amount of qualified equity investments of $3.5 billion.

For more information, tune in this afternoon to the Tax Credit Tuesday podcast. Additional details may also become available leading up to the hearing, so stay tuned.

Bill Introduced to Amend Ohio State NMTC

COLUMBUS, Ohio – March 19, 2014

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Ohio Rep. Terry Boose introduced a bill last week that would allow more taxpayers and investments to qualify for the state new markets tax credit (NMTC) program. H.B. 478 would eliminate the requirement that a taxpayer receive a federal NMTC allocation in order to qualify for the state NMTC. The bill would also allow taxpayers to claim the NMTC earlier in the credit schedule and allow investments to be made in low-income businesses that derive 15 percent or more of their annual revenue from the rental or sale of real property. 

Stakeholders Urge Extension of NMTC Program

WASHINGTON – March 7, 2014

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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.  

Administration Budget Would Permanently Extend NMTC

WASHINGTON – March 4, 2014

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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.

CDFI Fund to Award Only CY 2013 NMTC Allocation Authority

WASHINGTON – Feb. 27, 2014

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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.

Tax Reform Proposal Would Alter LIHTC, Repeal HTC, ITC and PTC

WASHINGTON – Feb. 26, 2014

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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.

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