News:

2006

December

CONGRESS EXTENDS NMTC PROGRAM

WASHINGTON, D.C. — December 11, 2006

Just before adjourning, the 109th Congress passed legislation that approved a one-year extension of the new markets tax credit (NMTC). The measure, which passed the House on a 367-45 vote on Friday and was approved by the Senate on a 79-9 vote on Saturday, provides an extension through 2008 for the NMTC program and modifies the program's regulations in Section 45D of the Internal Revenue Code to ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments. The legislation has been sent to the president for his signature.

To discuss what an additional credit volume of $3.5 billion means for the future of the NMTC program, join Novogradac & Company LLP in San Diego, Calif., for the New Markets Tax Credit Investors Conference to be held January 25-26, 2007.

CONGRESS TO EXTEND NMTC PROGRAM THROUGH 2008

WASHINGTON, D.C. — December 7, 2006

House and Senate negotiators are reporting today that they have reached an agreement on a long-debated package of tax legislation that includes a one-year extension of the new markets tax credit (NMTC). The Tax Relief and Health Care Act of 2006 provides an extension through 2008 for the NMTC program, which was originally slated to expire at the end of 2007. H.R. 6408 also modifies the NTMC program's regulations as set forth in Section 45D of the Internal Revenue Code to ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments. It is expected that the House will take up the measure first, possibly yet today, and the Senate will vote on the bill following its passage in the House. Click here for more information.

CDFI FUND ANSWERS FREQUENTLY ASKED COMPLIANCE QUESTIONS

WASHINGTON, D.C. — December 5, 2006

The Community Development Financial Institutions (CDFI) Fund recently posted New Markets Tax Credit Compliance and Monitoring Frequently Asked Questions on its web site. The document, dated November 2006, lists 53 questions and answers covering topics including general compliance, the allocation tracking system, allocation agreements, reporting and financial statements and more.

Join Novogradac & Company LLP in San Diego, Calif., for the New Markets Tax Credit Investors Conference to be held January 25-26, 2007. The conference features an in-depth session on compliance matters that will cover this latest guidance and much more.

EXTENSION URGED FOR HOUSING, BUSINESS PROVISIONS IN GO ZONE

BATON ROUGE, La. — December 4, 2006

Louisiana Gov. Kathleen Babineaux Blanco and Louisiana Recovery Authority (LRA) chairman Norman C. Francis renewed their push for Louisiana's congressional delegation to support extending several key provisions of the Gulf Opportunity Zone (GO Zone) Act of 2005. In a letter sent December 1, they called on Congress extend the bonus depreciation provided by the GO Zone Act, as well as extend the application of new markets tax credit (NMTC) to investments in community development entities serving the GO Zone.

CDFI FUND OPENS 2007 NMTC APPLICATION ROUND

WASHINGTON, D.C. — December 1, 2006

The U.S. Department of the Treasury announced today the opening of the fifth round of competition for the allocation of as much as $3.9 billion in tax credits under the New Markets Tax Credit (NMTC) program. The allocation application deadline is February 28, 2007. The notice of allocation availability for the 2007 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 series of applications workshops including a live satellite broadcast on December 19, 2006 at 1 p.m. (EST). CDFI Fund staff will describe how the NMTC program works, including how to apply for certification as a Community Development Entity (CDE), and how to apply to compete for an allocation of NMTCs in the upcoming 2007 round. Click here for details.

Novogradac & Company LLP will present two intensive one-day workshops December 6 in San Francisco and December 12 in Washington, D.C. These workshops will offer a comprehensive look at the NMTC application process and how to submit a competitive application. NMTC professionals will review the fourth round, provide an overview of the allocation process, discuss successful business, management and capitalization strategies, and offer tips on understanding the allocation agreement and creating a successful application. Click here for more information.

November

CDFI FUND ANNOUNCES NMTC APPLICATION WORKSHOPS

WASHINGTON, D.C. — November 13, 2006

The Community Development Financial Institutions (CDFI) Fund will be hosting several application workshops on the New Markets Tax Credit (NMTC) program around the country next month. CDFI Fund staff will present 10 workshops in various cities and the CDFI Fund will also present a live satellite broadcast of the application workshop at 1:00 p.m. EST on Tuesday, December 19. The satellite broadcast can be viewed at U.S. Department of Housing and Urban Development's field offices. Details, including dates and locations of these workshops, are available on the CDFI Fund web site.

DIRECTOR GARCIA TO LEAVE CDFI FUND

WASHINGTON, D.C. — November 6, 2006

The Community Development Financial Institutions (CDFI) Fund today announced that Art Garcia has announced his intentions resign from his post as director to return to Albuquerque to work on economic development within the state of New Mexico in a new position with the U.S. Department of Agriculture. His last day at the CDFI Fund will be Friday, December 8, 2006. The Department of the Treasury is currently assessing plans for an interim director. Click here for more information.

October

CDFI FUND INVITES COMMENTS ON NMTC ALLOCATION TRACKING SYSTEM, DISCLOSURE REQUIREMENTS

WASHINGTON, D.C. — November 6, 2006

The Community Development Financial Institutions (CDFI) Fund today published three notices inviting comments on the new markets tax credit (NMTC) allocation agreement and the requirements for readers contracted to read applications for the CDFI Fund's programs. One notice requests comments on the agency's Allocation Tracking System and the section of the allocation agreement that requires an NMTC allocatee to provide notice to the CDFI Fund of the receipt of a qualified equity investment (QEI). A second notice invites comments on certain disclosure requirements contained in the allocation agreement as well as the requirement for the submission of a copy of the allocatee's audited financial statements. The CDFI Fund also invited comments today on its conflict of interest reporting requirements for contract readers of applications submitted for funding under the agency's various programs.

CDFI FUND ANNOUNCES QEI INSSUANCE REQUIREMENTS FOR ELIGIBILITY FOR 2007 NMTC ROUND

WASHINGTON, D.C. — October 30, 2006

The Community Development Financial Institutions (CDFI) Fund today announced thresholds with respect to issuing qualified equity investments (QEIs) that entities that have received allocations of new markets tax credits (NMTCs) in prior rounds must have met in order to be eligible for the 2007 NMTC allocation application round. The CDFI Fund anticipates publishing the 2007 notice of allocation availability (NOAA) for the NMTC program by December 1, 2006, with application materials to be due to the CDFI Fund by February 28, 2007.

Entities that have received allocations in prior rounds (or affiliates of entities that have received allocations in prior rounds) that wish to apply in the 2007 round will be required to demonstrate that they (or their affiliates) have met certain eligibility thresholds with respect to issuing qualified equity investments QEIs under their prior allocations. Those thresholds, and certain exceptions, are listed in this advance notice.

SBA ANNOUNCES NMTC PILOT LOAN PROGRAM

WASHINGTON, D.C. — October 4, 2006

The Small Business Administration (SBA) announced in a Federal Register notice today that it is creating the New Markets Tax Credit (NMTC) Pilot Loan Program. Under this program, certain community development entities will be able to purchase a participation interest in up to 90 percent of an SBAExpress or CommunityExpress Section 7(a) guaranteed business loan as part of their investment in low-income communities under the NMTC program. Click here for more information.

September

CDFI FUND TO HOST NMTC WORKSHOPS

WASHINGTON, D.C. — September 18, 2006

The Community Development Financial Institutions (CDFI) Fund of the Department of the Treasury will host New Markets Tax Credit (NMTC) workshops in Jacksonville, Fla. on September 19 and Des Moines, Iowa on September 28. The purpose of these workshops is to describe how the NMTC program works, including how to apply for certification as a community development entity (CDE) and how to apply for an allocation of NMTCs in the upcoming 2007 NMTC allocation round. Materials for the workshops are available on the CDFI Fund web site.

CDFI FUND ANNOUNCES SCHEDULE FOR FIFTH ROUND OF NMTC PROGRAM

WASHINGTON, D.C. — September 1, 2006

A notice of allocation availability for the New Markets Tax Credit (NMTC) program will be published December 1, 2006, according to the Community Development Financial Institutions (CDFI) Fund web site. Applications for the fifth round of NMTC allocations will be due by February 28, 2007 and the CDFI Fund expects to announce awards in Fall 2007.

August

CDFI FUND INVITES COMMENTS ON RELEASE OF DATA

WASHINGTON, D.C. — August 15, 2006

The Community Development Financial Institutions (CDFI) Fund today published a notice soliciting comments on the release of transaction level report data and allocation tracking system data provided to the CDFI Fund by New Markets Tax Credit (NMTC) program allocatees. The CDFI Fund says it intends to make the transaction level report data and the ATS data available to the public within the parameters of all applicable federal information protection, privacy and confidentiality laws. The CDFI Fund expects that this data could be used by CDFIs, community development entities (CDEs), funders, investors, researchers and others to gain a better understanding of the community development finance industry. The CDFI Fund has developed a draft protocol for releasing the data and is seeking public comment on its draft data release protocol. Click here for more information.

Copies of the draft privacy protocol and data release sample are available online from the CDFI Fund web site.

TRIFECTA BILL DIES IN SENATE

WASHINGTON, D.C. — August 7, 2006 —

The Senate last week failed to pass legislation that would have extended the new markets tax credit beyond its 2007 sunset. The bill (H.R. 5970), referred to as the 'Trifecta' bill because it included permanent estate tax relief, tax extenders and increasing the minimum wage, failed on a 56-42 vote. Supporters of the provisions included in the measure have expressed hope that they could be passed yet this year after Congress returns from recess.

The extension of the new markets tax credit will be discussed by industry experts at Novogradac & Company LLP's New Markets Tax Credit Investors Conference October 24-26, 2006 in Boston, Mass.

HOUSE EXTENDS NMTC SUNSET IN TRIFECTA BILL

WASHINGTON, D.C. - August 1, 2006

Last Friday, the House of Representatives passed a bill that includes an extension of the New Markets Tax Credit beyond its 2007 sunset. The bill (H.R. 5970) is referred to as the 'Trifecta' bill, as it includes permanent estate tax relief, tax extenders and increasing the minimum wage. The bill now moves to the Senate, which is expected to take up the package later this week. It is unclear if the Senate will pass the bill, as there are strong objections to the permanent estate tax relief provisions in the bill.

The extension of the new markets tax credit will be discussed by industry experts at Novogradac & Company LLP's New Markets Tax Credit Investors Conference October 24-26, 2006 in Boston, Mass.

WASHINGTON, D.C. — August 1, 2006 —

The Community Development Financial Institutions (CDFI) Fund has released a general template of the allocation agreement for recipients of new markets tax credits (NMTCs) under the 2006 NMTC allocation round. The CDFI fund notes that document is provided for illustrative purposes and should not be relied upon or used for any other purpose. Portions of the template that are substantially different from the 2005 round allocation agreement template have been highlighted in yellow. The CDFI Fund says it expects to send out organization-specific allocation agreements to the 2006 round allocatees beginning in September.

June

WASHINGTON, D.C. — June 30, 2006 —

The U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund and the Internal Revenue Service (IRS) today issued a notice regarding the designation of certain targeted populations under the New Markets Tax Credit program, including a special designation in the Hurricane Katrina Gulf Opportunity Zone. Notice 2006-60 announces that the IRS will amend Section 1.45D-1 to grant flexibility to permit community development entities (CDEs) to invest in certain businesses located outside of low-income communities, provided the businesses serve designated populations. For NMTC allocations made under the GO Zone Act of 2005, the notice also designates as a targeted population certain individuals displaced from their principal residences and/or who lost their principal sources of employments as a result of Hurricane Katrina.

WASHINGTON, D.C. - June 26, 2006

Yesterday the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund released a list of projects financed through the end of the 2004 fiscal year. The list represents organizations that were awarded allocations of new markets tax credits (NMTCs) only in the first and second allocation rounds of the program. A total of 238 projects received more than $1.1 billion in capital raised through the NMTC program through those two allocation rounds. These projects are located in 38 states across the country and include loans to and equity investments in qualified active low-income community businesses and other community development entities. Click here for the list from the CDFI Fund.

WASHINGTON, D.C. — June 1, 2006 —

U.S. Treasury Secretary John W. Snow and Community Development Financial Institutions (CDFI) Fund Director Art Garcia announced today in Philadelphia, Pa. the names of the 63 organizations selected to receive tax credits for $4.1 billion in investments under the New Markets Tax Credit (NMTC) Program for their investment in low income communities. Snow included in his announcement the 13 organizations set to receive tax credits for $600 million in investment for specific use in the redevelopment of the Hurricane Katrina Gulf Opportunity Zone (GO Zone). In the four rounds to date, the CDFI Fund has made 233 awards totaling $12.1 billion in NMTC authority. A complete list of the 63 organizations selected and additional information can be found on the CDFI Fund's web site: www.cdfifund.gov.

Join industry experts to discuss the latest round of allocations at Novogradac & Company LLP's 5th Annual New Markets Tax Credit Spring Conference in Washington, D.C., June 7-9, 2006.

May

WASHINGTON, D.C. — May 31, 2006 —

U.S. Treasury Secretary John W. Snow, Community Development Financial Institutions (CDFI) Fund director Art Garcia and other Treasury officials will announce the awarding of $4.1 billion in new markets tax credits (NMTCs) tomorrow. The allocation awards include $600 million allocated specifically for the redevelopment of the Hurricane Katrina Gulf Opportunity Zone (GO Zone). Sen. Mary L. Landrieu, D-La., announced today that three organizations in Louisiana will receive $527 million in NMTCs. Bayoubuzz.com reports that nationwide, 63 organizations were selected from the 254 that applied. The site reports that 13 of the 63 allocatees - including four in Louisiana - will be awarded NMTC allocation authority for hurricane recovery and redevelopment as authorized under the Gulf Opportunity Zone Act of 2005.

Treasury officials are scheduled to visit eight communities around the country to highlight awards under the 2006 round of the NMTC program. Click here for a schedule of planned NMTC events.

WASHINGTON, D.C. - May 30, 2006

The New Markets Tax Credit (NMTC) Coalition reports, and the Community Development Financial Institutions (CDFI) Fund confirms, that the fourth round of NMTC allocation awards will be announced on Thursday, June 1, 2006. The NMTC Coalition reports that the Treasury Department is in the process of calling congressional offices to notify them of local recipients. The CDFI Fund received 254 applications requesting more than $28 billion in NMTC allocation authority for the fourth allocation round. There is $4.1 billion available, including an additional $600 million in NMTC authority that was authorized by the Gulf Opportunity Zone (GO Zone) Act to help rebuild low-income communities affected by Hurricane Katrina.

To discuss the allocation awards, join Novogradac & Company LLP at the 5th Annual New Markets Tax Credit Spring Conference in Washington, D.C., June 7-9, 2006.

WASHINGTON, D.C. — May 24, 2006 —

The Community Development Financial Institutions Program Fund (CDFI) in a Federal Register notice today extended the deadline of a previous request for comments regarding CDFI Form 0019, the community development entity (CDE) certification application. In order to qualify for an allocation of new markets tax credits (NMTCs), an organization must be certified as a CDE. Written comments will now be accepted through June 23, 2006.

WASHINGTON, D.C. — May 16, 2006 —

Novogradac & Company LLP yesterday sent a comment letter the Internal Revenue Service (IRS) in response to Notice 2006-36, which invited recommendations for the 2006-2007 Guidance Priority List. The letter requests guidance on several items related to the new markets tax credit (NMTC), including partnership allocations, redemption, reinvestment rules for equity investments and the application of the reasonable expectations test. Click here for a copy of the letter.

WASHINGTON, D.C. — May 11, 2006 —

Novogradac & Company LLP and a group of New Markets Tax Credit (NMTC) program industry participants sent a joint request last month that the Internal Revenue Service (IRS) consider amendments to the Treasury Regulations on redemption. The letter says that the group's suggested replacement language would lessen the administrative burden on community development entities (CDEs) and lessen the undue risk of recapture faced by investors in CDEs.

WASHINGTON, D.C. — May 11, 2006 —

A one-year, $3.5 billion extension of the New Markets Tax Credit (NMTC) program was dropped from the final budget reconciliation tax bill, H.R. 4297, approved by House and Senate Republican conferees this week. The provision was included in the Senate version of the bill but was eliminated by the conference committee on May 9.

April

WASHINGTON, D.C. — April 26, 2006 —

The Community Development Financial Institutions (CDFI) Fund today published its Performance and Accountability Report for the 2005 fiscal year. The report includes discussion and analysis of the programs administered by the CDFI Fund, including the new markets tax credit (NMTC) program, as well as independent auditors' reports and summary data of award and allocations. Click here for a copy of the report.

WASHINGTON, D.C. - April 24, 2006 —

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. Among the guidance listed in the agenda is a proposed rule 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. Click here for a copy of the agenda.

WASHINGTON, D.C. — April 12, 2006 —

The Office of Thrift Supervision (OTS) today published a revised definition of "community development" in its Community Reinvestment Act (CRA) regulations designed to encourage savings associations to increase their community development lending, qualified investments and community development services in distressed or underserved rural areas and designated disaster areas. This change will make OTS's definition of community development and the definition of the other federal banking agencies uniform. OTS also published additional guidance related to this definition and other aspects of its CRA regulations in Q&A form.

March

WASHINGTON, D.C. — March 29, 2006 —

The Community Development Financial Institutions (CDFI) Fund today announced that an open meeting of the Community Development Advisory Board, which provides advice to the director of the CDFI Fund, will be held from 9 a.m. to 4 p.m. on April 26, 2006. The meeting, the entirety of which will be open to the public, will include a report from the director on the activities of the CDFI Fund since the last advisory board meeting, as well as policy, programmatic, fiscal and legislative initiatives for the years 2006 and 2007. The room will accommodate as many as 20 members of the public; seats will be available on a first-come, first-served basis. Participation in the discussions at the meeting will be limited to advisory board members, Department of the Treasury staff and certain invited guests. Anyone who would like to have the Advisory Board consider a written statement must submit it to the CDFI Fund's Office of Public and Legislative Affairs. Click here for details about attending or submitting written comments.

BATON ROUGE, La. — March 28, 2006 —

Last week the Community Development Financial Institutions (CDFI) Fund released the preliminary results of its analysis of transaction level data submitted by New Markets Tax Credit (NMTC) Program allocatees through the Community Investment Impact System (CIIS). In 2004, a total of 50 allocatees (mostly Round I allocatees) made $1.265 billion in qualified low-income community investments (QLICIs). In the three allocation rounds to date, the CDFI Fund has made 170 awards totaling $8 billion in NMTC authority.

The CDFI Fund reports that more than 90 percent of the loans and investments reported for 2004 went to communities that have higher levels of distress than the program's threshold requirements and 100 percent of these loans and investments were made at better than market rates and terms. Additional details are available from the CDFI Fund web site: www.cdfifund.gov.

WASHINGTON, D.C. — March 27, 2006 —

In Notice 2006-36, the Internal Revenue Service (IRS) invites public comment on recommendations for items that should be included on the 2006-2007 Guidance Priority List. Treasury's Office of Tax Policy and the IRS use the guidance priority list each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance. The 2006-2007 Guidance Priority List will establish the guidance that the Treasury Department and the IRS intend to issue from July 1, 2006, through June 30, 2007.

WASHINGTON, D.C. — March 24, 2006 —

In its Notice 2006-38, the Internal Revenue Service advised taxpayers with Internal Revenue Code Section 47 rehabilitation credit property within the areas affected by the 2005 hurricanes that they will have 36 months to bring the properties back into service to avoid recapture on existing properties. The relief applies to rehabilitation projects located in the Gulf Opportunity Zone (GO Zone), the Rita GO Zone, or the Wilma GO Zone affected by hurricanes Katrina, Rita, or Wilma. The notice explained that taxpayers generally have a reasonable period to repair and restore qualified rehabilitated buildings and to return the buildings to actual service without the buildings being considered permanently retired from service. The IRS will deem up to 36 months to be a reasonable period.

Join Novogradac & Company LLP at the Solutions and Development Opportunities in the Gulf Opportunity Zone seminar to explore opportunities for affordable housing and community development in the Gulf States, provided for in the GO Zone Act of 2005.

WASHINGTON, D.C. — March 23, 2006 —

In Notice 2006-38, the Internal Revenue Service (IRS) today advised taxpayers of certain relief provided to taxpayers having rehabilitation credit projects in areas affected by hurricanes Katrina, Rita or Wilma in 2005. Internal Revenue Code (IRC) §1400N(h)(1), added by section 101 of the Gulf Opportunity Zone (GO Zone) Act of 2005, increases the credit percentage to 13 percent for qualified rehabilitation expenditures paid or incurred during the period beginning on August 28, 2005, and ending on December 31, 2008, with respect to any qualified rehabilitated building located in the GO Zone. IRC §1400N(h)(2) increases the credit percentage to 26 percent for qualified rehabilitation expenditures paid or incurred during the same period, with respect to any certified historic structure located in the GO Zone.

Join Novogradac & Company LLP at the Solutions and Development Opportunities in the Gulf Opportunity Zone seminar to explore opportunities for affordable housing and community development in the Gulf States, provided for in the GO Zone Act of 2005.

WASTINGTON, D.C . — March 2, 2006 —

The U.S. Department of the Treasury announced today that it will allocate an additional $600 million in New Markets Tax Credit (NMTC) authority to help rebuild low-income communities affected by Hurricane Katrina among qualified pending applicants serving the Gulf Opportunity Zone area who have requested authority in fiscal year (FY) 2006. This additional investment was authorized by the Gulf Opportunity Zone (GO Zone) Act, which President George W. Bush signed into law on December 21, 2005. For a copy of the amendment to the 2006 NMTC Notice of Allocation Availability and related information, please visit www.cdfifund.gov.

Join Novogradac & Company LLP April 10-11 in New Orleans, La. for a Solutions and Development Opportunities in the Gulf Opportunity Zone Seminar that will explore opportunities for affordable housing and community development in the Gulf States, provided for in the GO Zone Act of 2005.

WASHINGTON, D.C. — March 2, 2006 —

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency today announced final guidance implementing the recent changes to their Community Reinvestment Act (CRA) regulations. The guidance clarifies, among other things, the availability of CRA consideration for bank activities that revitalize or stabilize designated disaster areas. The guidance, which takes the form of questions and answers, will be effective upon publication in the Federal Register, which is expected shortly. According to the notice, a bank's loans, investments and services in support of disaster recovery that help to attract new, or retain existing, businesses or residents to a designated disaster area will receive CRA community development consideration for a 36-month period following designation of the area. The final regulations allow for extensions of this period in unusual cases, and the agencies announced that they plan to substantially extend the time periods in the Gulf Coast areas affected by hurricanes Rita and Katrina. The other major issue it addresses is implementation of the new community development test for banks with assets between $250 million and $1 billion. Click here for an advance copy of the Federal Register notice.

WASHINGTON, D.C . — March 1, 2006 —

The Community Development Financial Institutions (CDFI) Fund today invited comments concerning the community development entity (CDE) certification application. In order to qualify for an allocation of new markets tax credits (NMTCs), an organization must be certified as a CDE. In order to be certified as a CDE, an entity must be a domestic corporation or partnership that: has a primary mission of serving or providing investment capital for low-income communities or low-income persons; and maintains accountability to residents of low-income communities through their representation or any governing or advisory board of the entity. Click here for a copy of the notice and details about submitting comments.

February

WASHINGTON, D.C. — February 16, 2006 —

Beginning February 27, 2006, the U.S. Department of Housing and Urban Development (HUD) Office of Community Renewal is offering a broadcast regarding approximately $19 billion that is reserved exclusively for businesses in Renewal Communities, Empowerment Zones and in the Gulf Opportunity Zone (GO Zone) through special tax incentives. A panel of experts from IRS will provide information and answer questions on the incentives for businesses in these designated areas. In preparation for this broadcast, HUD has posted background information on the tax incentives. Click here for more information on HUD's webcast and copies of background information.

In addition, Novogradac & Company LLP will offer a Solutions and Development Opportunities in the Gulf Opportunity Zone seminar that will explore opportunities for affordable housing and community development in the Gulf States, provided for in the GO Zone Act of 2005. The GO Zone Act provides an emergency increase in tax credit and bond authority in Alabama, Louisiana, Mississippi and other Gulf States. These tax credits and tax-exempt bonds will be used directly to begin the rebuilding process of the Gulf Coast region.

WASHINGTON, D.C . — February 6, 2006 —

President George W. Bush today proposed a budget for fiscal year 2007 that includes $11.6 billion in discretionary spending for the Treasury Department - a 0.5 percent increase from the total appropriations approved by Congress for Treasury in 2006 ($11.5 billion). The 2007 budget again proposes to consolidate the Community Development Financial Institutions (CDFI) program into the Strengthening America's Communities Initiative, a strategy to be implemented by the Department of Commerce and the Department of Housing and Urban Development (HUD). Under the proposal, which was rejected by Congress last year, the Community Development Financial Institutions (CDFI) Fund would be appropriated $8 million for general administrative expenses and would continue to be responsible for administering the New Markets Tax Credit (NMTC) Program and for managing the existing loan portfolio of awards. Click here for more information about the 2007 proposed budget.

January

WASHINGTON, D.C. — January 31, 2006 —

A conference committee of Representatives and Senators will begin negotiations tomorrow to shape the final tax reconciliation legislation. The Senate-passed tax measure includes a one-year extension of the new markets tax credit (NMTC) and improves the credit’s targeting of rural areas. The House-approved tax bill, however, contains no extension of the NMTC. In an effort to encourage the conference committee to include the Senate provisions in the final legislation, the New Markets Tax Credit Coalition is circulating a letter to members of Congress in favor of the one-year extension. So far, more than 80 groups have joined as cosignatories. The deadline for signatures is Friday, February 3, 2006.

Parties interested in signing the letter in support of the NMTC should contact Jonathan Halpern by fax at 202-393-3034 or e-mail at jonathan@rapoza.org. Please provide your name, organization, city and state.

BATON ROUGE, La. — January 16, 2006 —

At its board of directors meeting last week, the Louisiana Recovery Authority heard Louisiana Republican Congressman Richard Baker, R-La., present a plan that outlined his recommendations concerning the $6.2 billion in Community Development Block Grant (CDBG) money that has been allocated to Louisiana. Among his recommendations is to increase the new markets tax credit (NMTC) provided by the state ( La. R.S. 47:6016) from 11 percent to 39 percent, matching the federal credit level.