Breaking News

BILL INTRODUCED TO ENCOURAGE NMTC INVESTMENT IN HAWAII

HONOLULU, Hawaii – January 27, 2012

The Hawaii State Legislature on Wednesday introduced two bills to allow guarantees and credit enhancements to community development entities (CDEs). The companion bills, known as S.B. 2895 and H.B. 2387, also increase total maximum funding amounts from $250,000 to $5 million that a CDE can receive from loans, guarantees and credit enhancements. The provisions are designed to facilitate private lenders' participation in new markets tax credit (NMTC) financing and monetization of existing project assets for purposes of NMTC financing. S.B 2895 passed its first reading in the Senate and the House of Representatives referred H.B. 2387 to its Economic Revitalization & Business and Finance committees.

PRESIDENT PROPOSES NEW TAX CREDITS IN STATE OF THE UNION

WASHINGTON, D.C. – January 25, 2012

In last night’s State of the Union address, President Barack Obama proposed a new $6 billion Manufacturing Communities Tax Credit. The proposed tax credit would provide $2 billion per year for three years to encourage investments in communities affected by job loss caused by the closure of a military base or a major employer. The president also discussed tax reform, energy tax credits and housing.

In his Notes from Novogradac blog, Michael J. Novogradac, CPA, discusses relevant points from the address, additional information that has since been released, and what these proposals mean for programs such as the new markets tax credit, historic tax credit, low-income housing tax credit and renewable energy tax credit.

 

INDIANA NMTC PROGRAM INTRODUCED

INDIANAPOLIS, Ind. – January 16, 2012

Indiana Reps. Suzanne Crouch and Peggy Welch last week introduced H.B. 1248 to create the New Markets Job Growth Tax Credit. The program would provide a state tax credit equal to 39 percent of the purchase price of a qualified investment, which the bill limits to $10 million per transaction. H.B. 1248 also provides for a $20 million annual program cap and a five-year carryforward period. If enacted, the program would take effect in 2013.

CALIFORNIA STATE NEW MARKETS TAX CREDIT PROPOSED

SACRAMENTO, Calif. – January 6, 2012

California Assembly Bill 643 was amended on Wednesday to include the creation of a California New Markets Tax Credit (NMTC) Program. A.B. 643 would authorize the California Tax Credit Allocation Committee (CTAC) to grant up to $50 million in state NMTCs each year from 2013 through 2019 to stimulate economic development and hasten California's economic recovery. Investments including, but not limited to, retail businesses, real property, financial institutions and schools would be eligible for the state NMTC.

Join Novogradac & Company in San Diego for the New Markets Tax Credit Conference on January 26-27 to discuss the prospects for the proposed California NMTC as well as what’s in store for the federal NMTC.

LAWMAKERS URGE EXTENSION OF NMTC PROGRAM

WASHINGTON, D.C. – December 16, 2011

Ohio Democratic Reps. Marcia L. Fudge, Marcy Kaptur, Dennis Kucinich, Tim Ryan and Betty Sutton Wednesday sent a letter to Minority Leader Nancy Pelosi and Speaker of the House John Boehner urging them to include an extension of the New Markets Tax Credit (NMTC) program, which expires on December 31, in a year-end tax bill. The letter cites the more than $1 billion in private capital investments that the NMTC program attracted to Ohio businesses between 2004 and 2010. Yesterday, Rep. Richard Neal took to the Senate floor in support of the program, citing the success of the program in Massachusetts. 

Join Novogradac & Company at the New Markets Tax Credit Conference, January 26-27, 2012 in San Diego, Calif. to discuss the economic development spurred by the NMTC in the past 10 years, and learn about new opportunities for investment.

IRS PUBLISHES FINAL RULES FOR TARGETED POPULATIONS

WASHINGTON, D.C. – December 2, 2011

The Internal Revenue Service has finalized regulations relating to how an entity serving certain targeted populations can qualify as a qualified active low-income community business (QALICB) under the New Markets Tax Credit (NMTC) program. The final regulations will apply to NMTC transactions as soon as they are published in the Federal Register, which is expected to occur on Monday.

Tune in to Tax Credit Tuesday podcast on December 6 to learn more about the regulations and what they mean for NMTC projects. The topic will also be addressed at the New Markets Tax Credit Conference, January 26-27, 2012 in San Diego, Calif.

CDFI FUND RELEASES REVISED DATA ON NMTC PROJECTS

WASHINGTON, D.C. – November 22, 2011

The Community Development Financial Institutions (CDFI) Fund today released an updated data summary on new markets tax credit projects financed through fiscal year 2010. The CDFI Fund also released a revised report listing all qualified active low-income community businesses (QALICBs) financed by CDEs through FY 2010 and a map of QALICBs financed by CDEs through FY 2010.

CDFI FUND INVITES COMMENTS ON NMTC PROGRAM

WASHINGTON, D.C. – November 4, 2011

The Community Development Financial Institutions (CDFI) Fund has invited comments on the New Markets Tax Credit (NMTC) program. The CDFI Fund would like interested parties to comment on topics related to census tract eligibility and  areas of high distress, treatment of certain businesses, community accountability, transaction costs, financial product evaluation and the use of other federally subsidized financing in conjunction with NMTCs. The request for comments will be published in the Federal Register on November 7, 2011 and the CDFI Fund will accept comments until February 6, 2012.

CDFI FUND UPDATES NMTC COMPLIANCE GUIDANCE

WASHINGTON, D.C. – November 3, 2011

The Community Development Financial Institutions (CDFI) Fund has added, revised and updated selected questions in its New Markets Tax Credit Compliance and Monitoring Frequently Asked Questions. Twenty-six questions have been added or significantly modified from the last version of the document published in May 2009. Tune in to the Tax Credit Tuesday Podcast on November 8 to hear Michael J. Novogradac, CPA, discuss key points contained in the new and modified guidance.

Questions about the updated compliance guidance can be directed to Brad Elphick, CPA, at (678) 867-2333.

CDEs ALLOCATE MORE THAN $20 BILLION THROUGH 2010

WASHINGTON, D.C. – October 28, 2011

The Community Development Financial Institutions (CDFI) Fund today released data collected on new markets tax credit projects financed through fiscal year (FY) 2010. Through the FY 2010 reporting period, community development entities (CDEs) disbursed a total of $20,901,020,746 in qualified equity investment (QEI) proceeds to 3,060 qualified active low-income community businesses (QALICBs) that financed both real estate developments and operating businesses in low-income communities.

In addition to a summary of the data, the CDFI Fund also released a report listing all QALICBs financed by CDEs through FY 2010 and a map of QALICBs financed by CDEs through FY 2010.  

NEW NMTC EXTENSION BILL INTRODUCED IN HOUSE

WASHINGTON, D.C. – October 17, 2011

Rep. Brian Higgins, D-N.Y., last week introduced H.R. 3224 to extend the New Markets Tax Credit (NMTC) program through 2016. The legislation would fund the program at a level of $10 billion each year, double the amount of annual authority proposed by H.R. 2655, the New Markets Tax Credit Extension Act of 2011. H.R. 3224 was referred to the House Ways and Means Committee upon introduction. 

NMTC APPLICANTS REMINDED OF ELIGIBILITY DEADLINE

WASHINGTON, D.C. – October 12, 2011

Organizations that applied for the 9th round of new markets tax credits (NMTCs) and that have previously received an NMTC allocation (or whose affiliates have previously received an NMTC allocation) are reminded of the October 14 deadline to meet the qualified equity investment (QEI) threshold. In order to be eligible to apply for an allocation of NMTC authority in the 2011 round, applicants must have issued a requisite minimum amount of QEIs from their prior allocation(s). A complete description of the issuance thresholds can be found in section III of the notice of allocation availability (NOAA). Applicants are also reminded that the CDFI Fund will only consider as “issued” those QEIs that have been recorded and finalized (as opposed to listed as “pending”) in the CDFI Fund’s Allocation Tracking System (ATS).

Questions about the QEI threshold can be directed to Owen Gray at (415) 356-8000, Annette Stevenson at (216) 298-9000 or Brad Elphick at (678) 867-2333.

Invest in your future; join applicants, investors, allocatees and other NMTC professionals at the New Markets Tax Credit Investors Conference on October 20-21 in Chicago, Ill. 

REGULATORS RELEASE DRAFT VOLCKER RULE

WASHINGTON, D.C. – October 11, 2011

The Federal Deposit Insurance Corporation (FDIC) met today to discuss a proposed notice of rulemaking about prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds, known as the Volcker Rule.

Tune in to today’s Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, discuss the rule’s significance the tax credit community, specifically how it may affect banks’ ability to continue to invest in low-income housing tax credits, new markets tax credits and renewable energy tax credits.  

SEN. CANTWELL URGES NMTC PROGRAM EXTENSION

WASHINGTON, D.C. - September 19, 2011

Sen. Maria Cantwell, D-Wash., on Friday sent a letter to Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., urging them to extend the New Markets Tax Credit program. In the letter, Cantwell urges the Senate to pass S. 996, the New Markets Tax Credit Extension Act of 2011, which would extend the new markets tax credit (NMTC) for five years and provide an alternative minimum tax credit exemption. Tune in to the Tax Credit Tuesday podcast on September 27 to learn hear more about Sen. Cantwell’s letter and the NMTC Extension Act.

CDFI FUND AWARDS $25 MILLION IN HEALTHY FOOD FINANCING

WASHINGTON, D.C. - September 14, 2011

The Community Development Financial Institutions Fund (CDFI Fund) today announced $25 million in grants under the fiscal year (FY) 2011 round of the Community Development Financial Institutions (CDFI) program targeted for organizations serving low-income neighborhoods with limited access to affordable and nutritious food, also called food deserts. The grants, made available as part of the multi-agency Healthy Food Financing Initiative (HFFI), were awarded to 12 CDFIs focused on developing solutions for increasing access to affordable healthy foods.

The CDFI Fund says the HFFI represents the federal government's first coordinated step to eliminate food deserts. In addition to the grants announced today, the CDFI Fund anticipates supporting an additional $250 million or more of private sector financing of healthy food activities through the New Markets Tax Credit (NMTC) program.

Novogradac & Company’s NMTC Mapping Tool allows users to identify areas designated as food deserts under the HFFI. Users can also use the tool to search by address, census tract number, congressional district, school district or metropolitan area to determine if a site is located in an NMTC-qualified area.

To discuss the HFFI and related opportunities, join Novogradac & Company at the annual New Markets Tax Credit Investors Conference, October 20-21, in Chicago, Ill.

SENATE DEMOCRAT URGES NMTC EXPANSION

WASHINGTON, D.C. - September 7, 2011

Sen. Mark Begich, D-Alaska, chairman of the Senate Democratic Steering and Outreach Committee, last week called for President Barack Obama to expand the New Markets Tax Credit (NMTC) as part of a jobs initiative. Expanding the NMTC is one of several job-creation suggestions Begich collected from meetings and conference calls with thousands of Americans this year. In a letter to the president, dated September 2, Sen. Begich suggests that expanding the NMTC will encourage small businesses to expand, especially in rural areas and for Native-owned businesses.

CDFI FUND ADVISORY BOARD MEETS SEPTEMBER 13

WASHINGTON, D.C. - August 31, 2011

The Community Development Financial Institutions (CDFI) Fund announced yesterday that the Community Development Advisory Board will meet on September 13. The meeting will include a report from CDFI Director Donna Gambrell on the activities of the CDFI Fund since the last advisory board meeting, as well as policy, programmatic, fiscal and legislative initiatives for 2011 and 2012.  Members of the public who wish to attend the meeting must contact the CDFI Fund by September 7.

 

CDFI FUND: DEMAND FOR NEW MARKETS TAX CREDITS UP 26 PERCENT

WASHINGTON, D.C. - August 4, 2011

The Community Development Financial Institutions (CDFI) Fund announced today that it received a total of 314 applications under the 2011 round of the New Markets Tax Credit (NMTC) program, the largest number of NMTC applications received since 2002 and an increase of 26 percent over the number of applications received for the 2010 round. Applicants requested nearly $27 billion in NMTC allocation authority; a total of $3.5 billion of allocation authority is available this round. The application deadline for the 2011 round was July 27. The CDFI Fund anticipates announcing the organizations that will receive NMTC allocations in early 2012.

The 2011 allocation round will be one of many topics discussed at the annual New Markets Tax Credit Investors Conference, October 20-21, in Chicago, Ill.

 

LEGISLATION INTRODUCED TO QUALIFY CERTAIN CENSUS TRACTS FOR NMTCS

WASHINGTON, D.C. - August 4, 2011

Rep. Jim Costa, D-Calif., along with Reps. Dennis Cardoza, D-Calif., and Jeff Denham, R-Calif., on Monday introduced a bill to treat certain population census tracts for which information is not available as low-income communities for purposes of the new markets tax credit (NMTC). H.R. 2740 would make census tracts that are adjacent to two or more low-income communities and that the Treasury Secretary does not have information indicating that such a tract is not a low-income community eligible for the NMTC program. The bill was referred to the House Committee on Ways and Means.

 

ADDITIONAL NMTC AUTHORITY PROPOSED FOR DISASTER RELIEF

WASHINGTON, D.C. - August 2, 2011

Reps. Ron Kind, D-Wis., Spencer Bachus, R-Ala., Richard Neal, D-Mass., and Terri Sewell, D-Alaska, and Sens. John Kerry, D-Mass., and Scott Brown, R-Mass, yesterday introduced H.R. 2718 and S. 1456, respectively. The Disaster Tax Relief Act of 2011 would provide an additional $250 million in annual New Markets Tax Credit (NMTC) allocation authority for community development entities (CDEs) to make qualified low-income community investments (QLICIs) in federally declared disaster areas. The bill would also give allocation priority to CDEs that have track records of providing capital or technical assistance to businesses or communities within the area or areas for which the NMTC allocation is being requested. The provisions of the Disaster Tax Relief Act of 2011 would be effective for major disasters declared after December 31, 2010. 

 

NEW MARKETS TAX CREDIT EXTENSION INTRODUCED IN THE HOUSE

WASHINGTON, D.C. - July 28, 2011

Rep. James Gerlach, R-Penn., on Tuesday introduced House Resolution 2655, the New Markets Tax Credit Extension Act of 2011. The bill extends the New Markets Tax Credit program through 2016, authorizing $5 billion in authority each year. The bill is cosponsored by Reps. Earl Blumenauer, D-Ore., John Lewis, D-Ga., James McDermott, D-Wash., Richard E. Neal, D-Mass., Charles B. Rangel, D-N.Y., and Patrick J. Tiberi, R-Ohio. H.R. 2655 was referred to the House Committee on Ways and Means. The full text of H.R. 2655, as well as it companion bill, S. 996, can be found on the New Markets Tax Credit Resource Center’s legislation page. 

 

NMTC APPLICATIONS DUE TOMORROW

WASHINGTON, D.C. - July 26, 2011

Entities that wish to apply for new markets tax credit (NMTC) allocations in the 2011 round are reminded that in addition to submitting allocation applications by 5 p.m. Eastern Time (ET) tomorrow, July 27, applicants for the ninth round must meet additional remaining deadlines in order to be eligible for an allocation. An application is not complete and will not be considered for review until the signature page and attachments for the electronic application have been uploaded electronically by 5 p.m. ET on July 29.

Questions about the NMTC program can be directed to Owen Gray, CPA, at (415) 356-8000.

LOCAL BUSINESSES NEEDED TO SUPPORT THE NMTC

WASHINGTON, D.C. - July 22, 2011

The New Markets Tax Credit Coalition (NMTCC) is circulating a letter of support for the new markets tax credit (NMTC) that urges lawmakers to cosponsor S. 996, the New Markets Tax Credit Extension Act of 2011. S. 996 would extend the NMTC with $5 billion in annual allocation authority through 2016 with alternative minimum tax (AMT) relief for investors. In light of the strong focus in Congress and by the Administration on cutting federal spending – including tax expenditures such as the new markets tax credit – the NMTCC is urging the community development entities (CDEs) to forward the sign-on letter to businesses that have benefitted from NMTC financing, including investees and applicants. The deadline to sign on to the letter in support of S. 996 is July 31.

SEN. COBURN PROPOSES ELIMINATING LIHTC, NMTC, HTC AND RETCs

WASHINGTON, D.C. - July 19, 2011

Sen. Tom Coburn, R-Okla., yesterday released the proposal “Back in Black: A Deficit Reduction Plan,” his outline for the federal government to reduce the deficit by $9 trillion over the next 10 years. The 614-page plan calls for the elimination of nearly $1 trillion in tax expenditures in a section entitled “Reforming Tax Expenditures & Ending Special Giveaways.” Among other tax incentives, the proposal would eliminate the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic preservation tax credit (HTC) and renewable energy tax credits (RETCs). 

Tune in to today’s Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, discuss this proposal and its prospects within the context of the ongoing debt ceiling and deficit reduction talks in Washington, D.C.

IRS RELEASES CORRECTIONS TO JUNE 7 NMTC NOTICES

WASHINGTON, D.C. - July 6, 2011

The Internal Revenue Service (IRS) today released corrections to its June 7, 2011 notices regarding the New Markets Tax Credit (NMTC) program. The IRS makes minor grammatical corrections in a correction to the June 7 notice of proposed rulemaking and a correction to the June 7 advance notice of proposed rulemaking.

OREGON LEGISLATURE PASSES STATE NMTC BILL

WASHINGTON, D.C. - June 29, 2011

The Oregon Legislature has passed Senate Bill 817, which creates a tax credit for investments in low-income communities. SB 817 creates the Low Income Community Jobs Initiative, a program that provides a tax credit against income and corporate excise taxes equal to 39 percent of the cost of a qualified equity investment. Investors receive the credits during a seven-year period, receiving no credit in the first two years, a 7 percent credit in year three and 8 percent credits in years four through seven. The credit applies to qualified investments made between July 1, 2012 and June 30, 2016. SB 817 has been sent to the governor.

 

News Archives