News Archive:

2005

December

WASHINGTON, D.C. — December 29, 2005 —

On September 9, Treasury Secretary John Snow announced special relief for community development entities (CDEs) applying under the fourth round of the New Markets Tax Credit (NMTC) program, in response to the declarations of major disasters by the Federal Emergency Management Agency following Hurricane Katrina. The CDFI Fund provided NMTC program allocation application deadline extensions, on a case-by-case basis, to organizations whose principal place of business is located in counties where FEMA issued a major disaster declaration as of July 15, 2005. The CDFI Fund reports that 13 organizations were granted application extensions and applications from all 13 of these organizations were submitted by the agreed upon deadline. As a result, the total number of applications under review has increased to 254 applications, and the total requested in NMTC allocation authority is $28,368,473,823.

Don’t miss a discussion of the effect the hurricanes will have on the fourth round of NMTC allocations, as well as the recently passed tax relief legislation featuring $1 billion in additional NMTC authority and the opportunities available for the community development industry to help the gulf region rebuild. Join industry experts at Novogradac & Company LLP’s New Markets Tax Credit Conference January 25-27, 2006 in Phoenix, Ariz.

WASHINGTON, D.C. - December 28, 2005

The Community Development Financial Institutions (CDFI) Fund today invited comments concerning the New Markets Tax Credit (NMTC) Program Allocation Application. Currently, no changes are proposed; the Department of Treasury, invites the general public and other federal agencies to comment on the application as part of its continuing effort to reduce paperwork and respondent burden, as required by the Paperwork Reduction Act of 1995(Public Law 104-13). Comments are invited on several factors including the accuracy of the agency's estimate of the burden of the collection of information and ways to minimize the burden of the collection of information on respondents. Written comments should be received on or before February 27, 2006 to be assured of consideration. Click here for more information.

WASHINGTON, D.C. — December 21, 2005 —

President George W. Bush today signed H.R. 4440, a package of tax incentives to aid recovery in the Gulf Coast region. The measure, passed last week by Congress, creates Gulf Opportunity Zones (GO Zones) and provides an additional $1 billion in new markets tax credit (NMTC) authority to be allocated to community development entities (CDEs) whose significant mission is the recovery and redevelopment of the GO Zone. H.R. 4440 provides $300 million in NMTCs in 2005 and 2006 and $400 million in 2007 for CDEs to make qualified low-income community investments within the GO Zone.

WASHINGTON, D.C. — December 16, 2005

The Senate by a voice vote passed H.R. 4440, a package of tax incentives to aid recovery in the Gulf Coast region. The amended measure reconciles separate tax proposals developed by the House and Senate. H.R.4440 creates Gulf Opportunity Zones (GO Zones) and provides an additional $1 billion in new markets tax credit (NMTC) authority to be allocated to community development entities (CDEs) whose significant mission is the recovery and redevelopment of the GO Zone. H.R. 4440 provides $300 million in NMTCs in 2005 and 2006 and $400 million in 2007 for CDEs to make qualified low-income community investments within the GO Zone.

Reports indicate that the House is expected to pass the bill quickly and send it to the President for signature before the congressional holiday recess.

WASHINGTON, D.C. — December 15, 2005 —

The number of community development entities (CDEs) certified by the Community Development Financial Institutions (CDFI) Fund as of December 1 has risen to 2,042, up from 1,979 as of November 1.

November

WASHINGTON, D.C. — November 30, 2005 —

The New Markets Tax Credit (NMTC) Coalition is collecting signatures on a letter in support of the New Markets Tax Credit Reauthorization Act of 2005 (H.R. 3957 and S. 1800). The letter will be distributed to members of Congress to demonstrate the broad base of support for the NMTC; it currently has 184 signatures. The NMTC Coalition invites organizations to sign onto the letter in support of the NMTC by filling out this form by Friday, December 2.

WASHINGTON, D.C. - November 28, 2005

The Community Development Financial Institutions (CDFI) Fund recently clarified the priority order in which it would review certification applications and requests for amendments to allocation agreements from community development entities (CDEs) that have received an allocation of new markets tax credits (NMTCs). Included in that guidance are two upcoming deadlines that may apply to CDEs if they wish to make certain amendments.

CDEs that received NMTC allocations under the first round (2001-2002) or second round (2003-2004) and have applied for (or whose affiliates have applied for) an allocation of NMTCs under the 2006 round, must submit amendment requests by December 1, 2005 in order for the CDFI Fund to process those requests prior to December 31, 2005. This exception applies solely to CDEs whose subsidiary entities were certified as CDEs as of October 14, 2005, and CDEs whose subsidiary entity CDE certification applications were received by October 14, 2005.

CDEs that received NMTC allocations under the third round (2005) and have applied for (or whose affiliates have applied for) an allocation of NMTCs under the 2006 allocation round, and would like to include subsidiary entities that have not yet been certified as CDEs in their allocation agreements prior to February 15, 2006, must submit the certification application for the subsidiary entities by December 15, 2005.

Click here for more information.

WASHINGTON, D.C. — November 21, 2005 —

The House of Representatives and the Senate on Friday gave final approval for an appropriations measure for the Community Development Financial Institutions (CDFI) Fund as part of H.R. 3058, a larger appropriations bill for the Departments of Transportation, Treasury, Housing and Urban Development (HUD) and several other agencies. The bill includes $55 million for the CFI Fund, the same amount as last year's funding level and $47 million more than President Bush's request. The legislation has been sent to the president for his signature. H.R. 3058 and the conference report, H. Rept. 109-307, can be found online at the Library of Congress web site.

WASHINGTON, D.C. — November 15, 2005

The Community Development Financial Institutions (CDFI) Fund today released a document delineating the priority order in which the CDFI Fund will review community development entity (CDE) certification applications and requests for amendments to allocation agreements that are made by CDEs that have received an allocation of new markets tax credits (NMTCs). Click here for a copy of that guidance.

To discuss this CDFI Fund policy and other guidance related to the NMTC, plan to attend Novogradac & Company LLP's New Markets Tax Credit Conference January 25 - 27, 2006 in Phoenix, Ariz.

WASHINGTON, D.C. — November 15, 2005 —

The NMTC Coalition reports that Sen. Chuck Grassley, R-Iowa, today introduced a modified draft of the "Tax Relief Act of 2005" that would extend the new markets tax credit (NMTC) through 2008. The Joint Committee on Taxation (JCT) yesterday released a description of Grassley's modification to the bill. In addition to providing $1 billion in additional NMTC allocations between 2005 and 2007 for community development entities (CDEs) to make within the Gulf Opportunity Zone as described in the original bill, the revised legislation would also provide $3.5 billion NMTCs for 2008. The proposal also requires that the Treasury Secretary prescribe regulations to ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments (QEIs). The Senate Finance Committee is expected to consider the modified legislation this afternoon.

WASHINGTON, D.C. — November 8, 2005 —

The Senate Finance Committee today released the chairman's mark of the "Tax Relief Act of 2005." The act includes a proposal to provide $1 billion in additional new markets tax credit (NMTC) allocations between 2005 and 2007. The legislation provides $300 million in NMTCs for both 2005 and 2006 and $400 million for 2007, to be allocated to community development entities (CDEs) to make qualified low-income community investments within the Gulf Opportunity Zone; to qualify for the credits, CDEs must have as a significant mission the recovery and redevelopment of the Gulf Opportunity Zone. Click here for a copy of the chairman's mark of the Tax Relief Act of 2005.

To discuss this legislation and other proposals affecting the future of the NMTC, plan to attend Novogradac & Company LLP's New Markets Tax Credit Conference January 25 - 27, 2006 in Phoenix, Ariz.

October

WASHINGTON, D.C. — October 31, 2005 —

Federal agencies, including the Treasury Department, today published their semiannual regulatory agendas, listing hundreds of regulations and other guidance projects that are planned or that will be developed in the coming year. Included in Treasury's agenda is guidance to address how the new markets tax credit (NMTC) should be allocated to the partners of a partnership under section 704(b) of the Internal Revenue Code and also address related partnership issues. Click here for Treasury's guidance agenda.

WASHINGTON, D.C. - October 27, 2005

The Department of the Treasury, 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. There are no changes being made to the form at this time; this review is part of a continuing effort to reduce paperwork and respondent burden as required by the Paperwork Reduction Act of 1995. Written comments should be received on or before December 27, 2005 to be assured of consideration. Click here for more information.

WASHINGTON, D.C. — October 20, 2005 —

The Community Development Financial Institutions (CDFI) Fund has posted the final version of the NMTC Allocation Agreement for 2005 awards. The final allocation agreement includes some changes from the draft document. The template for the final allocation agreement provides boilerplate provisions of the terms and conditions that may be entered into between the CDFI Fund and an allocatee; the exact terms and conditions of each specific NMTC allocation will be set forth in the allocation agreement that is executed by the CDFI Fund and each allocatee. Click here for a copy of the final allocation agreement.

WASHINGTON, D.C. — October 13, 2005

As of the September 21 application deadline for the fourth allocation round, the Community Development Financial Institutions (CDFI) Fund received 241 applications requesting $25.99 billion new markets tax credit (NMTC) authority - 7 times the $3.5 billion that is being made available this round, CDFI Fund Director Arthur A. Garcia reported last month at Boston Federal Home Loan Bank's New Markets Tax Credit Program Summit. In addition, Garcia said an additional 13 organizations that were directly impacted by the recent natural disasters have been provided with extensions. Click here for the full text of Garcia's remarks.

WASHINGTON, D.C. — October 13, 2005 —

Minnesota has adopted a tax shelter reporting statute that generally requires material advisors that have filed a federal Form 8264, Application for Registration of a Tax Shelter with the Internal Revenue Service, to file a duplicate of that filing with the Minnesota Department of Revenue by October 17, 2005. Penalties of as much as $50,000 can be imposed for each failure to file. Some investors in new markets tax credit (NMTC) transactions may be subject to this requirement. Material advisors that have filed a Form 8264 may have a filing requirement in Minnesota if they have sponsored an NMTC transaction (reportable transaction) that:

1. Is organized in Minnesota;
2. Is doing business in Minnesota;
3. Is deriving income from Minnesota sources; or
4. Has one or more investors that are Minnesota taxpayers.

Although the law is not entirely clear, it appears this filing requirement may apply to Form 8264 filed with the IRS after December 31, 2000. Click here for more information from the Minnesota Department of Revenue. Questions may be directed to Stephen Tracy directly at 415-356-8010.

September

WASHINGTON, D.C. — September 23, 2005 —

Sens. Mary Landrieu, D-La., and David Vitter, R-La. yesterday introduced legislation to deliver hurricane relief to Louisiana that includes an increase in new markets tax credit (NMTC) authority. S. 1765, the Louisiana Katrina Reconstruction Act, would increase available NMTC authority in 2005 to $6 billion, and $6.5 billion for 2006 and 2007. The measure also includes other significant proposals for economic and community development in the area, such as $30 billion in tax-exempt bond financing authority for a Hurricane Katrina Disaster Bond program and $10 billion in Community Development Block Grant funding to create a Louisiana Business Redevelopment Fund.

Join Novogradac & Company LLP to discuss this and other proposals to increase and reauthorize the NMTC program with industry experts at the New Markets Tax Credit Investors Conference Oct. 19-21 in Chicago, Ill.

WASHINGTON, D.C. - September 20, 2005 —

In addition to submitting allocation applications by September 21, 2005, applicants for the fourth round of new markets tax credits (NMTCs) must meet additional remaining deadlines in order to be eligible for an allocation. The signature page and attachments for the electronic application must be must be mailed to the Bureau of Public Debt (not the CDFI Fund) and postmarked on or before September 26, 2005 and received by 5 p.m., Eastern Time, on October 3, 2005. In addition, previous allocatees must meet the necessary qualified equity investment (QEI) issuance thresholds; for first and second round allocatees the deadline is December 31, 2005 and for third round allocatees the threshold must be met by February 15, 2006. Additional details about these deadlines and other application guidance is available in the CDFI Fund's NMTC Allocation Application Q & A Document.

MOBILE, ALA. — September 9, 2005 —

U.S. Treasury Secretary John W. Snow today announced special relief for organizations applying under the current round of the New Markets Tax Credit (NMTC) program. The CDFI Fund will consider extending certain NMTC allocation application deadlines on a case-by-case basis to organizations whose principal place of business is located in counties where FEMA issued a "major disaster declaration" since July 15, 2005. The CDFI Fund will also modify the NMTC program allocation application so that additional consideration will be given to organizations that commit to target their investment activities to counties where the Federal Emergency Management Agency (FEMA) issued a "major disaster declaration" since July 15, 2005. Click here for a copy of the announcement. Click here for a copy of the corresponding Federal Register notice. A list of FEMA major disaster declarations is available here. The CDFI Fund's Allocation Application Q&A has been updated with this information as well.

SAN FRANCISCO — September 8, 2005 —

All of us have seen the disturbing scenes of the effects of Hurricane Katrina that decimated New Orleans and other Gulf Coast communities. Our thoughts and well wishes go out for a healthful recovery go to all those affected by this unprecedented catastrophe. To help those most affected by the hurricane, Novogradac & Company LLP and its employees are donating in excess of $20,000 to relief efforts.

In light of the destruction suffered by the city of New Orleans, Novogradac & Company LLP has relocated its New Markets Tax Credit Investors Conference to Chicago, Ill. The conference dates of October 19-21 remain the same. The conference agenda and speakers are unchanged. The new location will be The Westin Michigan Avenue Chicago.

Novogradac & Company LLP also continues to maintain a resource center online with links to information and resources to assist the affordable housing community in providing relief and assistance to victims of the storm.

August

WASHINGTON, D.C. — August 29, 2005 —

Last week the Community Development Financial Institutions (CDFI) Fund updated the 2006 NMTC Allocation Application Q&A document. The updated Q&A is a revised version of the guidance originally published on July 14, 2005. Minor clarifications have been made to Q&A #24; Q&As #30 and #38 have been substantially revised; and three new Q&As have been added (#s 43-45). Click here for the latest version of the 2006 NMTC Allocation Application Q&A.

SAN FRANCISCO - August 22, 2005 —

Novogradac & Company LLP along with several co-signers joined together to provide the Community Development Financial Institutions (CDFI) Fund comments related to the 2005 allocation agreement. Click here for a copy of the letter. The latest version of the allocation agreement is available here.

WASHINGTON, D.C. — August 17, 2005 —

The online electronic allocation application for the fourth round of the new markets tax credit (NMTC) program was released this morning through the Community Development Financial Institutions (CDFI) Fund's web site. A detailed instruction manual was also posted with guidance for applicants. The allocation application deadline is September 21, 2005. In order to be eligible for an NMTC allocation, applicants must apply to the Bureau of Public Debt (BPD) to be certified as a community development entity (CDE); applications must be postmarked on or before August 22, 2005 and received by 5 p.m., Eastern Time, on August 30, 2005.

WASHINGTON, D.C. — August 9, 2005

The Internal Revenue Service (IRS) and Treasury Department yesterday released their 2005-2006 priority guidance plan, listing the guidance projects the government expects to have completed by June 2006. The plan contains 254 projects, including guidance under Internal Revenue Code Section 45D regarding how an entity meets the requirements to be a qualified active low-income community business for purposes of the new markets tax credit when its activities involve targeted populations. Click here for a copy of the 2005-2006 priority guidance plan.

WASHINGTON, D.C. — August 5, 2005

The Community Development Financial Institutions (CDFI) Fund has made public a draft of the allocation agreement for the New Markets Tax Credit (NMTC) program. The draft is provided for illustrative purposes only and provides boilerplate provisions of the terms and conditions of the allocation agreement that may be entered into between the CDFI Fund and allocatees in the 2005 round; the exact terms and conditions of each specific NMTC allocation will be set forth in allocation agreements executed by the CDFI Fund and each allocatee. The CDFI Fund expects to send out the organization-specific allocation agreements to the 2005 allocatees beginning in September.

WASHINGTON, D.C. — August 2, 2005

The New Markets Tax Credit (NMTC) Coalition is urging representatives from community development entities (CDEs) and NMTC investors to meet with members of the Senate Finance Committee and the House Ways & Means Committee during the August congressional recess to seek their support as co-sponsors to legislation to reauthorize the NMTC beyond its current December 31, 2007 sunset date. Questions regarding how to set up such meetings may be directed to Keith Bisson at keith@rapoza.org or 202-393-5225.

RICHMOND, Va. — August 1, 2005 —

The Virginia Department of Housing and Community Development (DHCD) is seeking consulting services to access new markets tax credit (NMTC) financing for Virginia-based projects. DHCD is seeking consulting services that will provide education about the NMTC program and technical assistance to potential developers and act as a project liaison. Proposals are due August 15, 2005.

July

WASHINGTON, D.C. — July 15, 2005 —

The U.S. Department of the Treasury announced today the opening of the fourth round of competition for the allocation of as much as $3.5 billion in tax credits under the New Markets Tax Credit (NMTC) program. The allocation application deadline is September 21, 2005. The notice of allocation availability for the 2006 application round, NMTC Allocation Application Q&A document and a read-only version of the application are available at www.cdfifund.gov.

The Community Development Financial Institutions (CDFI) Fund will present a free interactive video teleconference on August 4, 2005 at 1 p.m. (EDT) on the 4th round of the New Markets Tax Credit Program. Representatives from the CDFI Fund will provide an overview on a range of topics including: certification as a certified community development entity (CDE); the notice of allocation availability (NOAA) that governs the NMTC program; and an application review. Click here for details.

Novogradac & Company LLP will present two intensive one-day workshops August 24 in San Francisco and August 26 in Washington, D.C. These workshops will offer a comprehensive look at the NMTC application process, a review of the third round, an overview of the allocation process, an in depth discussion of successful business, community impact, management and capitalization strategies, and guidance for submitting a successful application.

June

SAN FRANCISCO — June 29, 2005 —

In consultation with other participants in the new markets tax credit (NMTC) field, Novogradac and Company LLP has drafted a response to the Community Development Financial Institutions (CDFI) Fund's request for comments on issues regarding the requirements for a qualified active low-income community business (QALICB) with respect to targeted populations for purposes of the NMTC program.

The proposal suggests that an entity wishing to serve a targeted population that otherwise lacks adequate access to loans or equity investments, could meet the requirements of a QALICB by satisfying certain requirements. The letter also proposes a special rule for property located in an Empowerment or Enterprise Zone. Lastly, the proposal includes language that would allow the investment in a QALICB to remain a qualified low-income community investment if the ownership changes and falls below 50 percent as long as the agreement governing the investment requires the loan to be repaid or the equity investment returned. Click here to read a copy of the letter that will be sent to Treasury summarizing the proposed changes and the corresponding proposed amendments to the NMTC regulations.

Interested parties are encouraged to add their signatures to the letter by contacting Brad Elphick at brad.elphick@novoco.com or 678-867-2333. Industry participants are also encouraged to share these documents with colleagues and interested parties and invite them to sign on as well. The deadline for submitting comments to Treasury is July 8, 2005. As such, parties interested in signing on to this letter must do so by July 6, 2005. Individuals may also want to send a separate letter if there are other issues that they think should be addressed.

WASHINGTON, D.C. — June 28, 2005 —

New markets tax credit (NMTC) allocatees with a calendar year-end are reminded that institution level reports, transaction level reports and audited financial statements must be submitted by Wednesday, June 29 to the Community Development Financial Institutions (CDFI) Fund. Failure to submit required reports by the deadline may result in default of the allocation agreement, which could result in termination or reallocation of any unused allocations and could also make the allocatee ineligible to apply for any future CDFI Fund program funding rounds. Details about which allocatees must meet this deadline and the information required can be found in Section 6.5 of the allocation agreement. Additional guidance is available in Questions 14-18 of the Allocation Agreement Q&A.

Institutional and transaction level reports must be submitted electronically through the CDFI Fund's Community Investment Impact System (CIIS). Audited financial statements may be submitted as an attachment to the institutional level report. If the institutional level report is not being submitted, audited financial statements should be submitted by mail to: Denise Polk, CDFI Fund Grants Manager, 601 13th Street N.W., Suite 200, Washington D.C., 2005; by fax to: 202-622-7754; or by e-mail to: mailto:grantsmanagement@cdfi.treas.gov.

The allocatees may contact the CME unit at cme@cdfi.treas.gov or at (202) 622-8226 if they have questions or concerns about the reporting requirements.

May

WASHINGTON, D.C. — May 24, 2005 —

The Community Development Financial Institutions (CDFI) Fund today gave advance notice of proposed rulemaking for the issuance of regulations relating to the new markets tax credit (NMTC) program and invited comments from the public on the designation of targeted populations as low-income communities under Internal Revenue Code Section 45D(e)(2). Click here for a copy of the notice and details on submitting comments.

WASHINGTON, D.C. — May 23, 2005 —

Rep. Russ Carnahan, D-Mo., last week introduced H.R. 2488, the Historic Rehabilitation Enhancement Act of 2005, a measure designed to promote state historic tax credits. Upon introduction the bill was referred to the House Committee on Ways and Means. Click here for a copy of H.R. 2488.

WASHINGTON, D.C. — May 17, 2005 —

Federal agencies, including the Internal Revenue Service (IRS) and Treasury, published their semiannual regulatory agendas, listing regulations and other guidance projects that are planned or that will be developed in the coming year. Among the guidance listed are plans for the IRS to address how the new markets tax credit (NMTC) should be allocated to the partners of a partnership under section 704(b) of the Internal Revenue Code and related partnership issues. Click here for Treasury's guidance agenda.

WASHINGTON, D.C. — May 11, 2005 —

The Treasury Department today announced that the Community Development Financial Institutions (CDFI) Fund awarded $2 billion in allocations under the New Markets Tax Credit (NMTC) program. Forty-one certified community development entities (CDEs) were selected to receive NMTCs in the third allocation round. A total of 208 CDEs applied for allocations, requesting an aggregate $23 billion in credits. Of the total applicant pool, approximately 20 percent were successful. The average allocation award is approximately $48,780,000 per allocatee. Allocation awards range in size from $5 million to $100 million. The median allocation award amount is $50 million. For a complete list of allocatees and related information, click here.

WASHINGTON, D.C. — May 6, 2005 —

The U.S. Department of the Treasury announced today that U.S. Treasury Secretary John W. Snow will join Community Development Financial Institutions Fund (CDFI Fund) Director Arthur A. Garcia next week to announce which organizations were selected to receive the $2 billion available in the 2005 round of New Markets Tax Credits. The ceremony will take place at 10 a.m. EDT on May 11 in the Treasury's Cash Room. To view the press release, click here. For the most-up-to-date information on this latest round and its allocatees, plan on attending Novogradac & Company LLP's 4th Annual New Markets Tax Credit Spring Conference in Washington, D.C., June 8-10 at the Fairmont Washington. Novogradac & Company LLP will update any new NMTC information as soon as it becomes available. Please check back May 11 for more on the latest round of NMTC allocations.

April

DOVER, Del. — April 29, 2005 —

The Delaware State Housing Authority (DSHA) is circulating a request for proposal (RFP) soliciting professional planning and economic consulting services regarding the new markets tax credits (NMTC) program. DSHA, along with potential partners, is considering the creation of a community development entity (CDE) and applying in the next application round in October for an allocation NMTCs that would be used to finance housing and economic development projects within the state of Delaware. Click here for details.

WASHINGTON, D.C. — April 20, 2005 —

Earlier this month, Sens. Rick Santorum, R-Pa., and Jon Corzine, D-N.J., began circulating a letter of support for at least an $80 million appropriation to the Community Development Financial Institutions (CDFI) Fund in the fiscal year (FY) 2006 federal budget. In his federal budget request, President George W. Bush proposes reducing the CDFI Fund budget to $7.9 million , from $55 million in 2005. The CDFI Coalition reports that as of April 18, 28 Senators had committed to sign the letter. Click here for a copy of the letter.

WASHINGTON, D.C. — April 19, 2005 —

According to a recent report by the National Park Service, Missouri led the nation in the amount invested by developers for the rehabilitation of Missouri buildings certified for federal historic preservation tax credits in fiscal year 2004. The $357,783,822 invested by developers in Missouri is $134 million more than in Pennsylvania, which ranked second, and more than twice the $157 million invested by developers in Illinois, which ranked third. Click here for a copy of the report.

WASHINGTON, D.C. — April 11, 2005 —

The IRS last week invited comments concerning REG-119436-01 - the existing final regulations for the New Markets Tax Credits (NMTC) program (Treasury Decision 9171). These regulations finalized the rules relating to the new markets tax credit under section 45D and replaced the temporary regulations that expired on December 23, 2004. There are no changes being made to the regulation at this time; this review is part of a continuing effort to reduce paperwork and respondent burden as required by the Paperwork Reduction Act of 1995. Written comments will be accepted on or before June 7, 2005. Click here for more information.

WASHINGTON, D.C. — April 7, 2005 —

The New Markets Tax Credit (NMTC) program should be doubled in size in order to increase business development and entrepreneurship in the African American and other urban communities, according to a report released this week by the National Urban League. "The State of Black America 2005: Prescriptions for Change," suggests changes in national policies and priorities to help promote equality in economics, housing, education, health, social justice and civic engagement. The National Urban League partnered with Stonehenge Capital last year to form the Empowerment Fund using a $127.5 million NMTC allocation.

WASHINGTON, D.C. — April 6, 2005 —

The number of community development entities (CDEs) certified by the Community Development Financial Institutions (CDFI) Fund has risen to 1,857, up from 1,835 as of March 1.

WASHINGTON, D.C. — April 5, 2005 —

Approximately $2 billion in new markets tax credit (NMTC) allocations will be awarded in May, according to recent reports from the Community Development Financial Institutions (CDFI) Fund. In a message released yesterday as part of the CDFI Fund's E-Newsletter, CDFI Fund Director Art Garcia says he anticipates the next round of NMTC allocations will be made next month. Click here for the complete message.

March

WASHINGTON, D.C. - March 15, 2005 -

The number of community development entities (CDEs) certified by the Community Development Financial Institutions (CDFI) Fund has risen to 1,835, up from 1,825 as of January 31.

SACRAMENTO, Calif. - March 10, 2005 -

In committee this month, the California Legislature may consider measures introduced by Assemblyman Ray Haynes, R-66 th Dist., that could provide matching or additional funding for new markets investments. A.B. 1224 would allow a credit equal to 5 percent of the adjusted purchase price, as defined, paid or incurred by the taxpayer for a qualified equity investment (QEI), as defined by Internal Revenue Code Section 45D. AB 957, which is expected to move forward, and AB 251 both propose a state New Markets Venture Capital (NMVC) program through which the Business, Transportation and Housing Agency would be authorized to enter into participation agreements with eligible NMVC companies to enable them to make developmental venture capital investments in smaller enterprises in low- or moderate-income geographic areas. Click here for copies of these bills.

WASHINGTON, D.C. — March 9, 2005 —

Sen. Joseph Lieberman, D-Conn., the main driver behind the $5.6 billion Bioshield bill signed into law last summer, plans to introduce another bill designed to draw investor capital to fund applied research for biodefense vaccines and treatments, including a "biodefense version" of the new markets tax credit (NMTC), according to a spokesperson in Lieberman's office. Click here for additional information.

WASHINGTON, D.C. — March 8, 2005 —

The Internal Revenue Service (IRS) is encouraging business taxpayers, associations and other interested parties to submit tax issues for the Industry Issue Resolution (IIR) Program by March 31, 2005. The objective of the IIR program is to resolve, through new and improved guidance, business tax issues in situations where the tax treatment is uncertain, frequently disputed or burdensome and that are common to significant numbers of taxpayers. For each issue selected, an IIR team of IRS and Treasury personnel, whose goal is to recommend guidance to resolve the issue, gather relevant facts from taxpayers or other interested parties. All requests received by March 31, 2005, will be considered for IIR project selections that are expected to be included in the 2005-2006 Treasury and IRS Guidance Priority List. Click here for IIR project submission procedures and selection criteria.

WASHINGTON, D.C. — March 1, 2005 —

On January 19, 2005 the Community Development Financial Institutions (CDFI) Fund updated the New Markets Tax Credit Allocation Agreement Q&A document. Question Number 15 addresses the question as to when community development entities (CDEs) are required to submit audited financial statements to the CDFI Fund.

The guidance states that "only allocatees are required to submit audited financial statements to the Fund. Submission of audited financial statements will be required beginning with the first fiscal year in which the allocatee executes its allocation agreement."

Many in the NMTC community have wondered whether CDEs with signed allocation agreements may be able to waive this requirement if they have reported little or no activity. Unfortunately, the Q&A does not provide any allowance for the CDFI Fund to waive this requirement. As such, an allocatee is required to submit an audited financial statement beginning with the first fiscal year in which the allocatee executes its allocation agreement.

It is clear that this requirement is an administrative burden for many allocatees and there are many policy reasons to allow waivers. However, given the current guidance and the fact that the CDFI Fund Q&A does not allow for any waivers, each allocatee should plan to submit audited financial statements to the CDFI Fund beginning with the first fiscal year in which the allocatee executes its allocation agreement.

WASHINGTON, D.C. — March 1, 2005 —

The Department of Commerce today invited nominations for persons to serve on the Strengthening America's Communities Advisory Committee, which will provide advice and recommendations, and develop a comprehensive written report of policy parameters to assist in implementing President George W. Bush's Strengthening America's Communities Initiative (SACI), including advising on its legislation, regulations and other guidance. SACI proposes to transfer and consolidate 18 federal economic and community development programs from the Departments of Agriculture, Commerce, Health and Human Services, Housing and Urban Development and Treasury within the Department of Commerce.

February

WASHINGTON, D.C. - February 24, 2005 -

In Notice 2005-22 the Internal Revenue Service (IRS) extends the deadline for material advisors to comply with the new filing requirements under Section 6111 provided in Notice 2004-80. General partners and/or developers of new markets tax credit (NMTC), historic rehabilitation or low-income housing tax credit (LIHTC) partnerships or properties that closed after October 22, 2004 may have a filing requirement as a material advisor. According to Notice 2005-22 if a person becomes a material advisor after October 22, 2004, and on or before March 31, 2005, that material advisor must file the required return on or before April 30, 2005. The penalties for non-compliance can be very severe, so parties involved with partnership closings after October 22, 2004 are urged to read Notices 2004-80, 2005-17 and 2005-22.

SACRAMENTO, Calif. - February 22, 2005 -

A national bank may invest as a limited partner in a community development entity (CDE), formed under the New Markets Tax Credit (NMTC) program, that acquires real estate loans made to qualified active low-income community businesses (QALICBs), according to Community Development Investment Letter # 2004-3 published this month by the Office of the Comptroller of the Currency (OCC). The specific investment fund addressed in the letter invests in second trust deed permanent loans on retail, office, commercial and industrial projects. Click here for a copy of the letter.

WASHINGTON, D.C. — February 9, 2005 —

The Community Development Financial Institutions (CDFI) Fund has posted a list of questions and answers clarifying the possible implications of the president's proposed fiscal year 2006 budget for the CDFI Fund, its programs and participants in those programs.

WASHINGTON, D.C. — February 7, 2005 —

In his federal budget request released today, President George W. Bush proposes reducing the Community Development Financial Institutions (CDFI) Fund budget to $7.9 million , from $55 million in 2005. The CDFI Fund would maintain the administration of the NMTC program and the management of existing awards under the CDFI Program, the Bank Enterprise Award Program and Native Initiative, but the remainder of existing programs would be consolidated in the proposed $3.7 billion Strengthening America's Communities Grant Program within the Department of Commerce. The new program would replace 18 programs that have been dubbed "ineffective or duplicative" by the White House Office of Management and Budget's (OMB) Program Assessment Rating Tool (PART). The proposal also suggests creating 40 economic Opportunity Zones and provides $10 billion in tax incentives over 10 years to qualified businesses in those areas.

WASHINGTON, D.C. — February 3, 2005 —

The Community Development Financial Institutions (CDFI) Fund is soliciting comments concerning its CDFI program, specifically the application for certification or re-certification as a CDFI. Written comments will be accepted on or before April 4, 2005. Click here for more information.

WASHINGTON, D.C. — February 2, 2005 —

The number of community development entities (CDEs) certified by the Community Development Financial Institutions (CDFI) Fund has risen to 1,825, up from 1,734 as of December 31.

WASHINGTON, D.C. — February 1, 2005 —

The Internal Revenue Service (IRS) this week published Notice 2005-17 granting an extension of time of the transitional relief provided in Notice 2004-80 for material advisors to comply with the new filing requirements under Section 6111. General partners and/or developers of low-income housing tax credit (LIHTC), historic rehabilitation or new markets tax credit (NMTC) partnerships or properties that closed AFTER October 22, 2004, may have a filing requirement as a material advisor. The penalties for non-compliance can be very severe, so parties involved with partnership closings after October 22, 2004 are urged to read Notices 2004-80 and 2005-17.

January

WASHINGTON, D.C. - January 28, 2005 -

The Internal Revenue Service (IRS) has released corrections to the final new markets tax credit regulations. Of significance, the definition of substantial improvements was removed. Further, the types of businesses prohibited from being lessees are now limited to the "sin" businesses and the effective date for this change was moved forward to June 22, 2005. For a copy of the corrections to the regulations, click here.

WASHINGTON, D.C. - January 27, 2005 -

Community development entities (CDEs) that received allocations of tax credit authority under the first two program rounds of the New Markets Tax Credit (NMTC) program have reported receiving more than $1.9 billion in equity investments, according to an update issued today by the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund says banks and other regulated financial institutions have invested $882 million to date, making them the single largest category of investors. Click here for details.

WASHINGTON, D.C. — January 19, 2005 —

The Community Development Financial Institutions (CDFI) Fund today published an update of its NMTC Allocation Agreement Q&A. In the Q&A, the CDFI Fund offers new guidance on reporting requirements, as well as an allocatee's control of subsidiary community development entities (CDEs). Click here for a copy of the new Q&A.

WASHINGTON, D.C. — January 14, 2005 —

When the 109 th Congress convened last week, Rep. Gary Miller, D-Calif., introduced H.R. 280, the Brownfields Redevelopment Enhancement Act. The measure is intended to provide cities and towns with more flexibility for brownfields development, increased accessibility to brownfields redevelopment funds, and greater capacity to coordinate and collaborate with other government agencies by providing additional incentives to invest in the cleanup and development of brownfield sites. H.R. 280 also proposes to de-link grants for brownfields development from community development loan guarantees and the related pledge of community development block grant (CDBG) funds.

WASHINGTON, D.C. — January 13, 2005 —

In a report released today, the Government Accountability Office (GAO) recommends that Environmental Protection Agency (EPA) consider stakeholder suggestions for improving and complementing the agency's brownfields program's as it weighs potential changes to the program. Among the suggestions is a discussion of the possible benefits of a federal brownfield tax credit, which the report suggests could complement EPA's brownfields program by attracting developers to brownfield sites on a broader national basis. Click here for a copy of the report.

WASHINGTON, D.C. — January 11, 2005 —

In order to be eligible for an allocation, applicants in the third round of new markets tax credits (NMTCs) that are prior allocatees are required to meet certain thresholds by January 21, 2005, for the issuance of qualified equity investments (QEI) related to their prior NMTC allocation awards. To satisfy this condition, applicants must submit the appropriate QEI data to the Community Development Financial Institutions (CDFI) Fund's Allocation Tracking System (ATS). Please contact the CDFI Fund's Compliance Manager, Yoo Jin Na, at (202) 622-8275 or by e-mail at nay@cdfi.treas.gov, with any questions regarding this requirement.

To learn more about NMTC application, allocation and compliance, join Novogradac & Company LLP in San Diego for the New Markets Tax Credit Conference January 26-28, 2005.

WASHINGTON, D.C. — January 3, 2005 —

The number of community development entities (CDEs) certified by the Community Development Financial Institutions (CDFI) Fund has risen to 1,778 up from 1,734 up as of December 30.