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REPLAY OF HEARING ON NMTC PROGRAM AVAILABLE ONLINE

WASHINGTON, D.C. - June 18, 2009

The House Ways and Means Select Revenue Measures Subcommittee today held a joint hearing with the Financial Services Subcommittee on Domestic Monetary Policy and Technology on issues involving the New Markets Tax Credit program. Specifically, the hearing was held to discuss a recent GAO report showing that minority-owned or controlled entities are less successful than non-minority owned or controlled entities in the NMTC application process. A recording of that hearing is available online here. Links to the witnesses’ written testimony are also available.

NMTC APPLICANTS REMINDED OF QEI REPORTING DEADLINE

WASHINGTON, D.C. - June 11, 2009

Prior round allocatees that applied for new markets tax credits (NMTCs) in the 2009 application round are reminded that the QEI issuance deadline is Wednesday, June 17. Pursuant to Section III.A.2.(a) of the 2009 Notice of Allocation Availability (NOAA), a prior NMTC allocatee (or any affiliates thereof) must demonstrate to the Community Development Financial Institutions (CDFI) Fund that it has issued a certain percentage of its qualified equity investments (QEIs) or issued and received a certain percentage of cash and commitments in order to be eligible for a 2009 NMTC allocation. On March 23, the CDFI Fund published a revised 2009 NOAA that waived the QEI issuance requirements relating to 2008 NMTC allocations. Applicants should also be sure to "finalize" any QEI information that is listed as "pending" to ensure that it is finalized in the allocation tracking system (ATS). Pending transactions will not be counted toward meeting the QEI issuance requirements.

IRS INVITES INPUT ON FORM 8874, NEW MARKETS TAX CREDIT

WASHINGTON, D.C. - June 11, 2009

The Treasury Department, as part of its continuing effort to reduce paperwork and respondent burden, today invited the general public and other federal agencies to comment on Form 8874, New Markets Credit. Investors use Form 8874 to claim a credit for equity investments made in qualified community development entities (CDEs) under the New Markets Tax Credit (NMTC) program. Written comments should be received on or before August 10, 2009 to be assured of consideration. Click here for more information.

GAO REPORTS ON MINORITY CDEs' PARTICIPATION IN NMTC PROGRAM

WASHINGTON, D.C. - June 1, 2009

From 2005 through 2008, non-minority community development entities (CDEs) that applied for allocations of new markets tax credit (NMTC) authority received about 27 percent and 15 percent, respectively, of the NMTC allocations and dollar amounts for which they applied, reports the Government Accountability Office (GAO). By comparison, GAO found that minority CDEs were successful with about 9 percent of their applications and received about 4 percent of allocation dollars that they requested. In a report released today, the GAO identifies the number of minority and non-minority CDEs that have applied and received NMTC awards and explains the process by which NMTC awards are made. The report also describes challenges, if any, minority and non-minority CDEs face in applying for and receiving NMTC awards and identifies efforts the CDFI Fund and others are taking to assist minority CDEs in applying for NMTC awards. To discuss the findings of the report with NMTC experts, join Novogradac & Company for the 8th Annual New Markets Tax Credit Spring Conference in Washington, D.C. on June 11-12.

TREASURY ANNOUNCES NMTC AWARDS FUNDED BY THE RECOVERY ACT

BOSTON - May 27, 2009

Treasury Secretary Tim Geithner today announced $1.5 billion in new markets tax credit (NMTC) allocations for 32 organizations awarded under the American Recovery and Reinvestment Act. The Recovery Act authorizes $1.5 billion in new NMTC allocations for community development entities (CDEs) that applied under the 2008 award round. The 32 organizations receiving awards today have identified principal service areas covering 33 states, the District of Columbia and Puerto Rico. A complete list of the organizations selected for this round of awards can be found on the CDFI Fund's web site: www.cdfifund.gov.

Join Novogradac & Company LLP at the 8th Annual New Markets Tax Credit Spring Conference in Washington, D.C. on June 11-12 to discuss these awards and other current developments in the NMTC program.

249 NMTC APPLICATIONS RECEIVED REQUESTING $22.5 BILLION

WASHINGTON, D.C. - May 14, 2009

The U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund announced today that it received a total of 249 applications under the 2009 round of the New Markets Tax Credit (NMTC) program. The CDFI Fund reports that applicants requested an aggregate total of $22,496,767,600 in NTMC allocation authority. A total of $5 billion of allocation authority is available for the seventh NMTC round including the $1.5 billion in additional allocation authority authorized through the American Recovery and Reinvestment Act of 2009. The CDFI Fund says it anticipates announcing the organizations that will receive NMTC allocations in October of 2009.

The seventh round of NMTC allocation applications is just one of the many topics planned for the 8th Annual New Markets Tax Credit Spring Conference in Washington, D.C. on June 11-12.

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