WASHINGTON – Dec. 10, 2013
Regulators today released a final draft of the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act commonly referred to as the Volcker Rule. The Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board today unanimously approved the rule. The so-called Volcker Rule places certain prohibitions and restrictions on the ability of a banking entity and non-bank financial company to make certain kinds of equity investments, and thus could have significant implications for the tax credit equity market.
To hear about the rule’s significance to the low-income housing tax credit (LIHTC), new markets tax credit (NMTC) and renewable energy tax credits, tune in to the Dec. 17 Tax Credit Tuesday podcast.
WASHINGTON – Dec. 4, 2013
Rep. Brian Higgins, D-N.Y., today called on the House of Representatives to permanently extend the New Markets Tax Credit (NMTC) program prior to its Dec. 31, 2013 expiration date. He said that NMTC investments have leveraged more than $180 million for projects in the city of Buffalo, N.Y.
WASHINGTON – Dec. 3, 2013
The Community Development Financial Institutions (CDFI) Fund announced today that the third version of its CDFI Information Mapping System (CIMS3) is scheduled to be launched on Dec. 11. The release of CIMS3, originally scheduled for Nov. 1, was delayed because of technical issues that have since been resolved. Transition to the new mapping system will begin Dec. 4, at which time users will be able to access existing maps but won’t be able to create or save any new maps or data. The CDFI Fund said it will release more information about CIMS3 next week.
Tune into the Dec. 10 Tax Credit Tuesday podcast to hear more about the update.
WASHINGTON – Nov. 18, 2013
The Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency on Nov. 15 released the final revisions to "Interagency Questions and Answers Regarding Community Reinvestment," which the agencies use to provide additional guidance on Community Reinvestment Act (CRA) regulations. The agencies updated five existing questions and added two new questions. The questions address statewide and regional impact, nationwide investments, community development services, proportional investments and lending performance.
Tune into the Nov. 19 Tax Credit Tuesday podcast to hear more about the guidance.
WASHINGTON – Nov. 15, 2013
The Community Development Financial Institutions (CDFI) Fund today released a report by the Urban Institute (UI) about the first four years of the New Markets Tax Credit program. UI found that from 2002 through 2006 the program operated as intended, attracted private capital to low-income communities, financed a diverse range of community and economic development projects, added to local tax bases, created and retained jobs in low-income areas and supported small businesses. The report also suggested improvements to secondary data collection, such as socioeconomic characteristics, the investment cost of job creation, credit pricing and the influence of the time value of money. The CDFI Fund commissioned the report, which is the first evaluation of the first four years of the program.
NORWALK, CONN. – Nov. 14, 2013
The Financial Accounting Standards Board’s Emerging Issues Task Force (EITF) today voted to issue a new exposure draft of changes to accounting for new markets tax credit (NMTC) investments, subject to the completion of certain administrative procedures. The EITF will consider the conditions developed for low-income housing tax credits in evaluating NMTC investments. EITF said that it wanted to collect more information from stakeholders and staff before making a final decision.
For a more detailed discussion of the meeting, check out the Nov. 19 Tax Credit Tuesday podcast.
WASHINGTON – Nov. 1, 2013
Yesterday, a bipartisan group of 70 U.S. representatives sent a letter to House Ways and Means Chairman Dave Camp, R-Mich. and Ranking Member Sandy Levin, D-Mich., urging support for permanent extension of the new markets tax credit (NMTC), which is set to expire on Dec. 31, 2013. In the letter, the lawmakers describe the NMTC as a critical source of financing for revitalizing low-income communities. They also note that the NMTC program has created 350,000 jobs and leveraged $55 billion in capital in economically distressed communities since 2003.
WASHINGTON – Oct. 31, 2013
U.S. Rep. Mike Thompson, D-Calif., yesterday introduced H.R. 3439, the New Markets Tax Credit Military Installation Act of 2013, which would direct as much as $100 million of new markets tax credits (NMTCs) per year to be allocated for investments in economically distressed communities that have experienced military base closures and realignments. The legislation is co-authored by Rep. Ralph Hall, R-Texas.
Tune in to the November 5 Tax Credit Tuesday podcast to learn more about this proposal.
WASHINGTON – Oct. 23, 2013
The Community Development Financial Institutions (CDFI) Fund today announced that it received 310 applications from community development entities (CDEs) requesting a combined $25.8 billion in allocation authority under the 2013 and 2014 round of the New Markets Tax Credit (NMTC) program. Demand for the current NMTC round is higher than that for the 2012 round, for which 282 CDEs requested $21.9 billion in allocation authority. The 2013-2014 round applicants are headquartered in 43 states, the District of Columbia and Puerto Rico.
Through the first 10 rounds of the NMTC program, the CDFI Fund has made 749 awards worth $36.5 billion in tax credit allocation authority. This includes $3 billion in Recovery Act awards and $1 billion for Gulf Opportunity Zones.
To prepare for the next NMTC allocation round, join us at the Novogradac New Markets Tax Credit Conference on Jan. 23 and 24 in San Diego.
WASHINGTON – Sep. 30, 2013
The U.S. Department of the Treasury today announced it has approved term sheets for $325 million in community development bonds, which it will guarantee through the fiscal year 2013 round of the Community Development Financial Institutions (CDFI) Fund Bond Guarantee program. The four recipients are Clearinghouse CDFI, Enterprise Community Loan Fund Inc., the Community Development Trust LP and Local Initiatives Support Corporation. The three qualified issuers of the bonds are the Community Reinvestment Fund, Opportunity Finance Network and TriSail Funding Corporation. The CDFI Bond Guarantee program is a federal credit program, under which bond proceeds are debt instruments to be repaid. The program operates at no cost to taxpayers.
Tune into the Oct. 8 Tax Credit Tuesday podcast to hear more about the CDFI Bond Guarantee program and its first round of awards.
WASHINGTON – Sep. 26, 2013
U.S. Reps. Steve Stivers, R-Ohio, and Mike Michaud, D-Ohio, are circulating a bipartisan sign-on letter to urge House Ways and Means Committee Chairman Dave Camp and Ranking Member Sandy Levin to support permanently extending the new markets tax credit (NMTC) with increased allocation authority. The letter stated that the NMTC has directly created more than 350,000 jobs and leveraged $55 billion in capital investment to underserved communities since 2003. In a cover note, Stivers and Michaud urged their colleagues to sign the letter as an affirmation of support for the NMTC as Camp prepares to release his tax reform bill. The letter will be open for signatures until Oct. 9.
To discuss the latest NMTC news, join Novogradac & Company in New Orleans for the Novogradac New Markets Tax Credit Conference, Oct. 10-11.
WASHINGTON – Sep. 24, 2013
Community development entities (CDEs) are reminded that the deadline for submitting subsidiary CDE certification applications is Oct. 1, 2013 to be eligible for qualified equity investment (QEI) issuance under the current allocation application round. Organizations may wish to certify a subsidiary as a CDE because the Community Development Financial Institutions (CDFI) Fund only permits new markets tax credit (NMTC) awardees to transfer allocation to subsidiaries certified as CDEs. Subsequently, any allocation agreement amendment requests related to subsidiary CDE certification filings must be made by no later than Nov. 1, 2013.