News:
2007
December
CDFI FUND OPENS 2008 NEW MARKETS TAX CREDIT ROUND
Washington, D.C. — December 18, 2007
The U.S. Department of the Treasury announced today the opening of the sixth 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 March 5, 2008. The notice of allocation availability for the 2008 application round and a read-only version of the application are available at www.cdfifund.gov.
The Community Development Financial Institutions (CDFI) Fund will conduct six application workshops on the NMTC program around the country next month. To learn more detailed information about these workshops or to register, please visit the CDFI Fund's web site at www.cdfifund.gov. 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 for an allocation of NMTCs in the upcoming round.
Novogradac & Company LLP will present two intensive one-day workshops on January 3 in San Francisco and January 8 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 previous application rounds, provide an overview of the allocation process, and offer tips on understanding the allocation agreement and creating a successful application.
UNSUCCESSFUL NMTC APPLICANTS RECEIVE DEBRIEFING LETTERS
Washington, D.C. — December 14, 2007
The Community Development Financial Institutions (CDFI) Fund has sent debriefing letters to community development entities (CDEs) that applied for new markets tax credits (NMTC) but did not receive an allocation in the last allocation round. Debriefing letters include an introductory section that explains the application evaluation process and describes what the CDFI Fund considers an excellent application. In addition, the letters provide applicants with a general range of their score in each of the four sections of the application and provide narrative commentary on the application from the three reviewers.
The results of the fifth allocation round, as well as the sixth round of applications, will be among the topics discussed at Novogradac & Company LLP's New Markets Tax Credit Conference January 24-25, 2008 in San Diego, Calif.
CDFI FUND RELEASES TREND ANALYSIS OF CIIS INSTITUTIONAL LEVEL REPORT DATA FOR CDFIS
Washington, D.C. — December 13, 2007
The Community Development Financial Institutions (CDFI) Fund today released its initial three-year trend analysis of data for fiscal years 2003 through 2005 provided by community development financial institutions (CDFIs) through its data collection system known as the Community Investment Impact System (CIIS). The CDFI Fund is also releasing the three years of CIIS institution level report data that was used for the three-year trend analysis. Subsequent reports will analyze the transaction level data CDFIs and community development entities (CDEs) report to CIIS to examine the array of lending activities-business development and expansion and affordable housing lending-of CDFIs, and CDEs through the New Markets Tax Credit (NMTC) program.
To learn more about the latest developments in the NMTC program, join Novogradac & Company LLP in San Diego January 24-25, 2008 for the New Markets Tax Credit Conference, where Donna Gambrell, director of the CDFI Fund, is scheduled to deliver the keynote address.
BILL WOULD ALLOCATE ADDITIONAL NTMCS FOR GO ZONE
Washington, D.C. — December 10, 2007
Rep. Richard Baker, R-La., last week introduced legislation to extend tax benefits created through the Gulf Opportunity (GO) Zone Act of 2005. The bill would extend the special depreciation allowance, rehabilitation credit, work opportunity tax credit; new markets tax credit (NMTC) and tax exempt bond financing in GO Zone parishes in Louisiana. H.R. 4312 would allocate an additional $200 million of NMTC funding for 2008 and $200 million for 2009. Click here for more information.
November
TREASURY ANNOUNCES NEW CDFI FUND DIRECTOR
Washington, D.C. — November 9, 2007
Treasury Secretary Henry M. Paulson, Jr. today announced the appointment of Donna Gambrell to serve as director of the Community Development Financial Institutions (CDFI) Fund. Gambrell succeeds Kimberly A. Reed, who today announced her resignation and intent to enter the private sector. Reed has been with the Treasury Department for three and half years and was appointed to oversee the CDFI Fund in January, where she has since supervised the successful completion the 2007 round of the CDFI Fund programs. Reed's last day at the CDFI Fund will be November 12, 2007.
Gambrell, whose appointment is effective November 26, 2007, joins the CDFI Fund from the Federal Deposit Insurance Corporation (FDIC) where she served as deputy director of consumer protection and community affairs in the division of supervision and consumer protection. In 2006, Gambrell worked on the Gulf Coast rebuilding efforts in Louisiana and Mississippi where she spearheaded partnerships among financial institutions, government agencies and community-based organizations to promote community and economic development in areas devastated by hurricanes Katrina and Rita, which included low- and moderate-income neighborhoods.
October
WAYS AND MEANS TO CONSIDER NMTC EXTENSION
Washington, D.C. — October 31, 2007
House Ways and Means Committee Chairman Rep. Charles Rangel, D-N.Y., yesterday introduced H.R. 3996, the Temporary Tax Relief Bill of 2007, a bill that would provide relief from the alternative minimum tax (AMT) for one year and would extend several expiring business and individual tax provisions, including the new markets tax credit (NMTC). The committee is scheduled to consider H.R. 3996 tomorrow. Click here for a summary of the bill.
ONE YEAR NMTC EXTENSION INCLUDED IN PROPOSED TAX REFORM BILL
Washington, D.C. — October 25, 2007
Ways and Means Committee Chairman Rep. Charles B. Rangel, D-N.Y., today introduced the Tax Reduction and Reform Act of 2007, a bill that would provide tax relief through a permanent repeal of the individual alternative minimum tax (AMT) and enhancement of other tax benefits. The bill also includes extensions for several expiring tax provisions, including a one-year extension of the new markets tax credit (NMTC). The measure would extend the NMTC for one additional year (through the end of 2009), permitting a $3.5 billion maximum annual amount of qualified equity investments. Click here for a summary of the legislation.
CONGRESS TO CONSIDER TAX EXTENDERS, SPECIAL NMTC ALLOCATION
Washington, D.C. — October 17, 2007
Senate Finance Committee Chairman Max Baucus, D-Mont., is holding meeting today to begin preparation for a tax extenders package that is expected to include an extension of the new markets tax credit (NMTC), which is slated to expire December 31, 2008. Previous incarnations of tax extension proposals have also featured provisions prolonging various renewable energy tax incentive programs, such as the Section 45 production tax credit, which may also be included in this latest proposal.
Reports indicate that extension legislation could be marked up as early as next week. The NMTC Coalition circulated a sign-on letter championing an extension of the NMTC and reports a strong show of support. The Coalition plans to submit the letter today.
Meanwhile, in the House yesterday, Rep. Tom Reynolds, R-N.Y., introduced H.R. 3843, the New Employment for Workers & Job Opportunities for Business Strength (New Jobs) Act of 2007, a measure that would provide a special allocation under the NMTC program in connection with trade adjustment assistance (TAA). TAA is a federal program sponsored by the U.S. Department of Commerce that provides financial assistance to manufacturers affected by import competition. The bill would make an additional $500 million in NMTC allocations available in 2008 to spur capital or equity investments in, or loans to, businesses that receive TAA benefits or that employ TAA-eligible workers. Upon introduction, H.R. 3843 was referred to the House Ways and Means Committee.
To discuss the potential for an NMTC extension and the proposed TAA allocation as well as the recently announced fifth round of NMTC allocation, join Novogradac & Company LLP at its New Markets Tax Credit Investors Conference, October 25 and 26, in Chicago, Ill.
To learn more about the future renewable energy tax incentives, including the Section 45 production tax credit, register to attend Novogradac & Company LLP's Financing Renewable Energy Conference, November 8-9, in Miami, Fla.TREASURY AWARDS $3.9 BILLION IN NEW MARKETS TAX CREDITS
New Orleans, La.— October 5, 2007
Deputy Treaury Secretary Robert M. Kimmitt and Community Development Financial Institutions (CDFI) Fund Director Kimberly A. Reed announced today in New Orleans, La., the 61 organizations selected to receive $3.9 billion in tax credits for use in low-income communities under the 2007 round of the New Markets Tax Credit (NMTC) program. Kimmitt and Reed were in the area for the announcement to highlight the 11 organizations receiving $400 million in NMTC for specific use in the redevelopment of the Hurricane Katrina Gulf Opportunity Zone (GO Zone). The 61 allocatees are headquartered in 24 states and the District of Columbia, but anticipate serving 45 states, D.C. and Puerto Rico. In the five rounds to date, the CDFI Fund has made 294 awards totaling $16 billion in NMTC authority. A complete list of the organizations selected and additional information can be found on the CDFI Fund's web site.
To discuss the allocation awards, join Novogradac & Company LLP at its New Markets Tax Credit Investors Conference in October 25 and 26 in Chicago, Ill., where Kimberly Reed is scheduled to deliver the keynote presentation on October 25 at 12 p.m.
CDFI FUND TO ANNOUNCE FIFTH ROUND OF NMTC AWARDS FRIDAY
WASHINGTON, D.C.— October 2, 2007
U.S. Treasury Deputy Secretary Robert M. Kimmitt and Community Development Financial Institutions (CDFI) Fund Director Kimberly A. Reed will announce Friday $3.9 billion is being awarded under the 2007 round of the New Markets Tax Credit (NMTC) program, which will include $400 million allocated specifically for the redevelopment and reconstruction of the Hurricane Katrina Gulf Opportunity Zone (GO Zone).
Kimmitt and Reed will join Chairman Don Powell, the federal coordinator for Gulf Coast rebuilding, to see how the NMTC program is helping to repair areas of Ochsner Baptist Medical Center that were damaged by Hurricane Katrina. After the tour, they will make the national announcement of the organizations selected to receive allocations under the 2007 NMTC program. Click here for more information.
To discuss the allocation awards, join Novogradac & Company LLP at New Markets Tax Credit Investors Conference in October 25 and 26 in Chicago, Ill., where CDFI Fund Director Reed is scheduled to deliver the keynote presentation on October 25 at 12 p.m.
Septmber
BLUNT SIGNS BILL TO CREATE MISSOURI NMTC
JEFFERSON CITY, Mo.— September 4, 2007
Gov. Matt Blunt today signed legislation that boasts several economic and community development provisions, including the creation of a state match for the federal New Markets Tax Credit (NMTC) program. House Bill 1 was introduced by Rep. Ron Richard, R-Dist. 129, on August 20 after Blunt vetoed a previous legislative package in July that also included a state NMTC.
August
CDFI FUND INVITES PROJECT PROFILES FROM NMTC ALLOCATEES
WASHINGTON, D.C.— August 24, 2007
The U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund today invited awardees and allocatees of its various programs, including the New Markets Tax Credit (NMTC) program, to submit profiles on projects using an online project profile template. Guidance for submitting project profiles is also available. The CDFI Fund says it developed the template to allow awardees and allocatees to more fully describe and record the innovative approaches and best practices used by community development financial institutions (CDFIs) and community development entities (CDEs). The CDFI Fund says it plans to make all the project information it collects available in searchable format on its web site in December.
TREASURY RELEASES 2007-08 TAX PRIORITY GUIDANCE PLAN
WASHINGTON, D.C.— August 13, 2007
The Treasury Department today released its 2007-2008 Priority Guidance Plan. The 2007-2008 Priority Guidance Plan contains 303 projects to be completed over a 12-month period, from July 2007 through June 2008. Among the projects planned under “general tax issues,” the Treasury Department indicates it will issue final regulations under Internal Revenue Code Section 45D on how an entity serving targeted populations meets the requirements to be a qualified active low-income community business. Copies of the 2007-08 Priority Guidance Plan can be obtained from the Treasury Department web site.
CDFI FUND UPDATES CIIS, INSTRUCTIONS FOR FY 2007 REPORTS
WASHINGTON, D.C.— August 13, 2007
A new version of the Community Investment Impact System (CIIS), called CIIS 5.0, is now available online. CIIS is the web-based data collection system that community development entities (CDEs) use to submit institution level reports (ILRs) and transaction level reports (TLRs). The Community Development Financial Institutions (CDFI) Fund issued new instructions for ILRs and TLRs (including 24 new data points) that are to be used by CDEs with fiscal years ending during 2007. The current CIIS home page still links to FY 2006 documents; the new instructions and related documents, dated August 1, 2007, are available to users after they log into CIIS.
To discuss this and other developments in the NMTC industry, join Novogradac & Company LLP for the Developing Thriving Communities: Federal & State Tax Credits Drive Sustainable Outcomes conference September 6 and 7 in St. Louis or for the New Markets Tax Credit Investors Conference in October 25 and 26 in Chicago, Ill.
SENATORS URGE PROPORTIONAL SHARE OF NMTCS FOR RURAL AREAS
WASHINGTON, D.C.— August 6, 2007
Senate Finance Committee Chairman Sen. Max Baucus, D-Mont., and Ranking Republican Chuck Grassley, R-Iowa, last week urged the Treasury Department to ensure that rural communities receive their due share of investment under the New Markets Tax Credit (NMTC) program. In a letter to Community Development Financial Institutions (CDFI) Fund Director Kimberly Reed, the senators note that data collected through fiscal year 2005 shows disproportionately less investment in rural areas and urge that CDFI Fund’s new regulations ensure that a proportional share of NMTC dollars is delivered to rural communities. Click here for a copy of the letter.
On May 22, the CDFI Fund invited comments from industry participants regarding regulations regarding how, for purposes of the NMTC program, the CDFI Fund should ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments (QEIs). Click here for copies of comment letters submitted in response to that request. (Scroll down to the heading “Non-Metro QEI Allocations.”)
To discuss this and other developments in the NMTC industry, join Novogradac & Company LLP October 25-26 for the New Markets Tax Credit Investors Conference in Chicago, Ill., where CDFI Fund Director Kimberly Reed is scheduled to deliver a keynote address.
July
HOUSE COMMITTEE APPROVES LANGUAGE PROHIBITING TAX PATENTS
WASHINGTON, D.C.— July 19, 2007
The House Judiciary Committee yesterday approved language that would prohibit patents of tax planning methods. The ban was proposed by Rep. Rick Boucher, D-Va., and approved by the committee as an amendment to H.R. 1908, the Patent Reform Act of 2007. H.R. 1908 passed the committee by a voice vote. Boucher's amendment defines a tax planning method as "a plan, strategy, technique or scheme that is designed to reduce, minimize, or defer" a taxpayer's tax liability. Click here for more information about patenting tax strategies.
NMTC PROJECTS FINANCED THROUGH 2005 NEAR $3 BILLION
WASHINGTON, D.C.— July 18, 2007
Through the fiscal year (FY) 2005 reporting period, community development entities (CDEs) disbursed a total of $2,975,204,230 to 686 different qualified active low-income community businesses (QALICBs) - including both real estate projects and operating businesses in low-income communities, according to the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund requires all CDEs that receive new market tax credit (NMTC) allocations to provide annual reports detailing how the NMTC proceeds were invested in low-income communities. These reports along with their audited financial statements are provided by CDEs within six months of the end of their fiscal years. Click here for more information.
REGULATORY AGENCIES PROPOSE REVISIONS TO CRA GUIDANCE
WASHINGTON, D.C.— July 11, 2007
A group of federal bank and thrift regulatory agencies today requested public comment on proposed revisions to the “Interagency Questions and Answers regarding Community Reinvestment.” The agencies are proposing nine new questions and answers, as well as substantive and technical revisions to the existing interagency guidance pertaining to the Community Reinvestment Act (CRA). Among the proposed new questions and answers are clarifications regarding treatment of investments made in certified community development entities (CDEs) under the New Markets Tax Credit (NMTC) program. The notice invites comment on the proposed changes and, more generally, on other CRA issues. Comments are due September 10, 2007.
REPORTABLE TRANSACTION RULES FOR TAX-EXEMPT ENTITIES ISSUED
WASHINGTON, D.C.— July 5, 2007
The Internal Revenue Service (IRS) today issued guidance effective July 6 regarding how, under Internal Revenue Code (IRC) Section 4965, excise taxes apply in prohibited tax shelter transactions involving tax-exempt third parties. In Treasury Decision (TD) 9334, the IRS sets final and temporary rules relating to the requirement of a return to accompany payment of excise taxes. TD 9335 provides temporary rules regarding the form, manner and timing of disclosure obligations with respect to prohibited tax shelter transactions involving tax-exempt third parties. The IRS also released a notice of proposed rulemaking relating to entity-level and manager-level excise taxes with respect to prohibited tax shelter transactions to which tax-exempt entities are parties.
The IRS ruled in Revenue Procedure 2007-20 that transactions in which the refundable or contingent fee is related to tax credits under IRC Sections 42 and 45D will not be treated as reportable transactions for purposes of Treas. Reg. § 1.6011-4(b)(4) and, thus, are not be subject to IRC Section 4965. However, some other tax credit transactions that were not specifically exempted from the definition, such as historic tax credit transactions, may be subject to the regulations under Section 4965.
June
CDFI FUND ANNOUNCES TEMPORARY E-MAIL FOR CIIS DATA SUBMISSION QUESTIONS
WASHINGTON, D.C.— June 22, 2007
The Community Development Financial Institutions (CDFI) Fund today posted a notice instructing community development entities (CDEs) and CDFIs required to report data through CIIS by June 29 or 30 respectively to use the following e-mail address until further notice for questions or guidance with CIIS submissions: CIIShelp@hotmail.com. The notice says the building where EF Kearney, the contractor that manages the system, is located is experiencing an electrical outage.
CDFI FUND REMINDS CDES OF CIIS DEADLINES
WASHINGTON, D.C.— June 18, 2007
The Community Development Financial Institutions (CDFI) Fund last week reminded CDFIs and community development entities (CDEs) of approaching deadlines for reporting fiscal year 2006 information into the Community Investment Impact System, or CIIS. CIIS is the web-based data collection system that CDFIs and CDEs use to submit institution level reports (ILRs) and transaction level reports (TLRs) to the CDFI Fund.
The deadline for CDFIs with a December 31, 2006 fiscal year end is June 30, 2007. The deadline for CDEs with a December 31, 2006 fiscal year end is June 29, 2007. Program participants are encouraged to refer to their specific allocation or assistance agreement for further details.
More information, including CIIS report forms and instructions, are available online at www.cdfifund.gov/what_we_do/ciis.asp.
May
CDFI FUND INVITES COMMENTS ON NON-METRO QEI ALLOCATIONS
WASHINGTON, D.C.— May 22, 2007
The Community Development Financial Institutions (CDFI) Fund today invited comments regarding how, for purposes of the New Markets Tax Credit (NMTC) program, the CDFI Fund should ensure that non-metropolitan counties receive a proportional allocation of qualified equity investments (QEIs). Commentators are asked to consider possible alternatives for ensuring that non-metropolitan areas receive a proportional allocation of QEIs such as the location of investors, location of allocatees, the principal service area of allocatees, and the location of qualified low-income community investments (QLICIs); the most appropriate definition of the term “proportional”; what changes the CDFI Fund should consider making to the allocation application review and decision-making process; and whether the CDFI Fund should require that applicants specify in their applications the percentage of their QEI proceeds that they will use to make investments in non-metropolitan areas and then be held to those percentages as a condition of their allocation agreements. Comments must be submitted by July 6, 2007. Click here for more information.
To discuss this and other issues important to NMTC program participants, join industry experts in Washington, D.C. June 7-8, at Novogradac & Company LLP's 6th Annual New Markets Tax Credit Spring Conference.
NMTC COALITION PUBLISHES 2007 PROGRESS REPORT
WASHINGTON, D.C.— May 21, 2007
Community development entities (CDEs) are securing investments and closing transactions at a faster rate than required by new markets tax credit (NMTC) regulations and investing in communities that exceed statutory and regulatory standards for economic distress, according to the NMTC Coalition’s 2007 Progress Report. The report, released last week, provides policymakers and practitioners with an update on the implementation of the NMTC program through the first three NMTC allocation rounds. Based on a survey of CDE allocation recipients, the report also showcases five CDEs that represent the range of projects and flexible investment products made possible by the NMTC.
NEW MARKETS TAX CREDIT COALITION URGES INDUSTRY PROFESSIONALS TO SUPPORT THE NEW MARKETS TAX CREDIT EXTENSION ACT OF 2007
WASHINGTON, D.C.— May 17, 2007
The New Markets Tax Credit (NMTC) Coalition yesterday urged industry professionals to build support in the House and in the Senate for The New Markets Tax Credit Extension Act of 2007 (H.R. 2075/ S. 1239), which reauthorizes the NMTC program through 2013. The NMTC Coalition is encouraging industry professionals to contact members of the House Ways and Means Committee, members of the Senate Finance Committee, and Senators and Representatives who co-sponsored the NMTC legislation in the previous congress and urge them to support the extension. Reps. Richard Neal, D-Mass., and Ron Lewis, R-Ky., and Sens. John Rockefeller, D-W.Va., and Olympia Snowe, R-Maine, have drafted letters to the House and the Senate , respectively, to build support for H.R. 2075 and S. 1239.
To discuss the latest efforts to extend the NMTC, join industry experts in Washington, D.C. June 7-8, at Novogradac & Company LLP's 6th Annual New Markets Tax Credit Spring Conference.
BILLS INTRODUCED TO EXTEND NMTC THROUGH 2013
WASHINGTON, D.C.— May 1, 2007
Reps. Richard Neal, D-Mass., and Ron Lewis, R-Ky., yesterday introduced H.R. 2075, the New Markets Tax Credit Extension Act of 2007, a bill to extend the new markets tax credit (NMTC) through 2013. Sens. John Rockefeller, D-W.V., and Olympia Snowe, R-Maine, last week introduced the Senate companion bill, S. 1239. In his statement on the floor of the House of Representatives upon introduction of legislation yesterday, Lewis said, "Congress should extend the new markets tax credit for several years, or provide a permanent authorization. Investors, CDEs and businesses need greater certainty in planning and implementing revitalization strategies in economically distressed urban and rural communities."
To discuss the latest efforts to extend the NMTC, join industry experts in Washington, D.C. June 7-8, at Novogradac & Company LLP's 6th Annual New Markets Tax Credit Spring Conference.
April
CDFI FUND INVITES COMMENT ON NMTC ANNUAL REPORT
WASHINGTON, D.C.— April 26, 2007
The Community Development Financial Institutions (CDFI) Fund today invited comments on the New Markets Tax Credit (NMTC) Program Annual Report, including the Community Investment Impact System (CIIS). The CDFI Fund uses the annual report and CISS to collect compliance and performance data from certified community development entities (CDEs). Click here for more information. Written comments should be submitted on or before May 29, 2007.
COMMENTS INVITED ON FORMS 8874-A, 8874-B
WASHINGTON, D.C.— April 19, 2007
The Department of the Treasury and Internal Revenue Service (IRS) today invited comments concerning forms 8874-A and 8874-B, which are used when claiming the new markets tax credit (NMTC) for qualified equity investments (QEIs). Qualified community development entities (CDEs) must provide taxpayers holding a QEI with a completed Form 8874-A when a qualified equity investment is acquired. Qualified CDEs must provide taxpayers holding a QEI with a completed Form 8874-B when a recapture event occurs. Written comments should be received on or before June 18, 2007.
March
CDFI FUND RECEIVES 258 NMTC APPLICATIONS
WASHINGTON, D.C.— March 30, 2007
The Community Development Financial Institutions (CDFI) Fund today announced it received a total of 258 applications under the 2007 round of the New Markets Tax Credit (NMTC) program, requesting an aggregate total of $27,894,100,485 of NTMC allocation authority. Under the 2007 NMTC allocation round, a total of $3.9 billion of allocation authority is available, including $400 million that has been set aside specifically for recovery and redevelopment in the Gulf Opportunity Zone (GO Zone). Forty-two of the 258 applicants, requesting $5,711,000,000 in allocation authority, indicated that they would like to be considered for an allocation of GO Zone NMTCs.
Join Novogradac & Company LLP at the upcoming GO Zone Forum on May 15-16, 2007 in New Orleans, La., and the 6th Annual New Markets Tax Credit Spring Conference, June 7-8, 2007 in Washington, D.C. to discuss the latest round of NMTC applications and what lies ahead for the program.
BUDGET AMENDMENT WOULD EXTEND NMTC
WASHINGTON, D.C.— March 28, 2007
An amendment to the Senate budget resolution, S.Con.Res. 21, supporting an extension of the New Markets Tax Credit (NMTC) program passed last week by unanimous consent. S.Amdt. 629, sponsored by Sens. Olympia Snowe, R-Maine, and John Rockefeller, D-W.V., would provide the use of the deficit-neutral reserve fund for tax relief for reauthorizing the NMTC for five years.
NMTC APPLICATIONS DUE TODAY
WASHINGTON, D.C.— March 6, 2007
In addition to submitting allocation applications by 5 p.m. (ET) today, applicants for the 2007 round of new markets tax credits (NMTCs) must meet additional remaining deadlines in order to be eligible for an allocation as outlined in Question # 15 in the 2007 NMTC Allocation Application Q&A. After submitting an online application, applicants must submit the following attachments:
- an unmodified signature page, signed by the authorized representative;
- investor letters to support data provided in Table E1;
- investor letters to support data provided in Question # 51; and
- organizational charts as requested in Question # 36.
An original and four copies of the signed signature page and all attachments for the electronic application (in a single package) should be sent to the Bureau of Public Debt (not the CDFI Fund), as instructed in the application materials, and must be postmarked on or before March 9, 2007. The CDFI Fund expects to announce NMTC awards in the fall.
In the meantime, plan to join Novogradac & Company LLP for its 6th Annual New Markets Tax Credit Spring Conference June 6-8, 2007 in Washington, D.C.
CDFI FUND DIRECTOR TESTIFIES BEFORE HOUSE COMMITTEE ABOUT PROPOSED FY 2008 BUDGET
WASHINGTON, D.C.— March 2, 2007
Kimberly Reed, director of the Community Development Financial Institutions (CDFI) Fund, testified yesterday before the U.S. House of Representatives' Appropriations Subcommittee on Financial Services at its hearing on the provision of financial services in distressed communities and President George W. Bush’s proposed fiscal year 2008 budget. Reed's testimony highlighted the CDFI Fund's mission and programs, including the New Markets Tax Credit (NMTC) program. Click here for a copy of her prepared remarks.
February
2007 NMTC ALLOCATION APPLICATION SYSTEM RE-OPENED, DEADLINE EXTENDED
WASHINGTON, D.C.— February 28, 2007
The Community Development Financial Institutions (CDFI) Fund announced today that the online system for new markets tax credit (NMTC) allocation applications has been re-opened and applicants may resume completing and submitting online NMTC applications. The CDFI Fund reports that the system began experiencing sporadic technical problems beginning on Friday, February 23, and yesterday access to the system was temporarily suspended so the problems could be resolved as quickly as possible.
As a result of the technical difficulties, the CDFI Fund has extended the NMTC allocation application deadline until 5 p.m. (ET) on Tuesday, March 6. The last day to contact the CDFI Fund for programmatic or technical support has been changed to Monday, March 5.
The CDFI Fund reports that at no point has there been any loss or corruption of data submitted by applicants. As such, applicants will be able to resume applications exactly where they left off, and those applicants that had already submitted their applications are not required to provide further updates.
CDFI FUND TEMPORARILY RESTRICTS ACCESS TO ONLINE NMTC APPLICATION, EXPECTED TO EXTEND APPLICATION DEADLINE
WASHINGTON, D.C.— February 27, 2007
The Community Development Financial Institutions (CDFI) Fund announced today that it has temporarily restricted access to the 2007 New Markets Tax Credit (NMTC) Allocation Application system to all users in order to fully address the technical issues that have been reported. The CDFI Fund says will provide updates regarding the accessibility of the allocation application system as well as an extension of the application deadline via emails to authorized representatives and/or contact persons, as well as myCDFIfund accounts.
The CDFI Fund says the technical problems have been sporadic, but they are making every effort to ensure that these technical issues are addressed quickly. In the meantime, the CDFI Fund strongly urges applicants to continue to work offline so that they can transfer data into the application system as quickly as possible once the system becomes available. Applicants may continue to send programmatic questions to CDFIHelp@cdfi.treas.gov until further notice.
NMTC APPLICATION DEADLINE REMINDER
WASHINGTON, D.C.— February 19, 2007
Entities that wish to apply for new markets tax credit (NMTC) allocations in the 2007 round are reminded that the allocation application deadline is 5 p.m. (ET) on February 28. The last date to contact the Community Development Financial Institutions (CDF) Fund with any questions regarding completion or submission of the 2007 allocation application is 5 p.m. (ET) on February 26. To access the application, go to www.cdfifund.gov and log onto myCDFI Fund. A detailed instruction manual is also available.
GEORGIA GENERAL ASSEMBLY CONSIDERS STATE NMTC
ATLANTA — February 15, 2007
Rep. Charles Martin, R-Alpharetta., introduced a proposal in Georgia’s House of Representatives to provide a state income tax with respect to certain qualified low-income community investments and long-term debt securities. Under H.B. 437, several terms such as “qualified active low-income community business” have the same meaning as under Section 45D of the Internal Revenue Code. However, other features and terms of the tax credit are uniquely defined or restricted under the legislation.
CDFI FUND RELEASES NMTC QEI REPORT
WASHINGTON, D.C. — February 14, 2007
The CDFI Fund today published a New Markets Tax Credit (NMTC) Qualified Equity Investment (QEI) Issuance Report. The report identifies, among other things, each entity that has received allocations of NMTCs; the total allocation amount received by each entity; the dollar amount of allocation authority that has been issued to investors; the amount remaining to be issued to investors; and the predominant markets to be served by each entity. The CDFI Fund says it will update the report on a monthly basis based on information reported by allocatees.
Entities that have received NMTC allocations in prior rounds that wish to apply in the 2007 round are reminded that they are required to demonstrate that they (or their affiliates) have met certain eligibility thresholds with respect to issuing QEIs under their prior allocations by February 15, 2007. Prior allocatees should note that the QEIs must be finalized in the Allocation Tracking System (ATS) to be counted by the CDFI Fund. Directions for reporting QEIs through ATS can be found online here.
FEB. 15 ELIGIBILITY DEADLINE FOR SOME NMTC APPLICANTS APPROACHES
WASHINGTON, D.C. — February 8, 2007
Entities that have received new markets tax credit (NMTC) allocations in prior rounds (or affiliates of entities that have received allocations in prior rounds) that wish to apply in the 2007 round are 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 by February 15, 2007. Those thresholds, and certain exceptions, are listed in Question #7 in the 2007 NMTC Allocation Application Q&A.
IRS PUBLISHES GUIDANCE ON SECTION 4965
WASHINGTON, D.C. — February 7, 2007
The Internal Revenue Service (IRS) today provided guidance to tax-exempt entities described in Internal Revenue Code (IRC) Section 4965 regarding whether they are parties to a prohibited tax shelter transaction under IRC Section 4965. Notice 2007-18 states that pursuant to Revenue Procedure 2007-20, transactions in which the refundable or contingent fee is related to tax credits under IRC Sections 42 and 45D will not be treated as reportable transactions for purposes of Treas. Reg. § 1.6011-4(b)(4) and, thus, will not be subject to Section 4965. In addition, Notice 2007-18 invites comments from the public regarding all aspects of Section 4965.
WHITE HOUSE PROPOSES FY 2008 BUDGET
WASHINGTON, D.C. — February 5, 2007
President George W. Bush’s proposed budget for the Treasury Department in fiscal year (FY) 2008 requests $28.6 million for the Community Development Financial Institutions (CDFI) Fund, $20.7 million more than the FY 2007 request. The appropriations request for the Treasury Department in FY 2008 is $12.1 billion, a 4.7 percent increase from the FY 2007 request of $11.6 billion.
Click here for more information on the FY 2008 budget proposal.
GLOBALIZATION DISCUSSION INCLUDES NMTC AS MODEL PROGRAM TO PROMOTE BUSINESS INVESTMENT
WASHINGTON, D.C. — February 1, 2007
In testimony on Tuesday before House Committee on Ways and Means hearing on Trade and Globalization, Gene B. Sperling, senior fellow for economic policy and director of the Center for Universal Education, suggested that to achieve a type of global competition that is consistent with American values, the country should secure a compact for workers in the United States that provides dignity for workers and includes a strong agenda for job creation. As part of the that compact, Sperling recommended the creation of new federal policies modeled on the Empowerment Zones and New Markets Tax Credit (NMTC) programs to provide tax incentives for business investment in communities vulnerable to trade. Click here for the full transcript of his remarks.
January
GAO REPORTS ON NMTC PROGRAM
WASHINGTON, D.C. — January 31, 2007
The results of a survey and statistical analysis indicate the new markets tax credit (NMTC) program may be increasing investment in eligible low-income communities by the investors that participate in program, according to a report issued today by the Government Accountability Office (GAO). The GAO report describes the status of the program, profiles NMTC program participants, assesses the credits’s effectiveness in attracting investment by participating investors, and assesses Internal Revenue Service (IRS) and the Community Development Financial Institutions (CDFI) Fund compliance monitoring efforts. To ensure that it is reviewing the full range of NMTC transactions, the GAO recommends that the IRS should develop information for selecting which CDEs to audit as part of its compliance study. In addition, the report says the IRS should work with the CDFI Fund to further explore options for cost effectively monitoring investor compliance.
ELECTRONIC 2007 NMTC ALLOCATION APPLICATION AVAILABLE
WASHINGTON, D.C. — January 30, 2007
The electronic application for the fifth round of allocations under the New Markets Tax Credit (NMTC) program is now available online. To access the application, go to www.cdfifund.gov and log onto myCDFI Fund. A detailed instruction manual is also available. The allocation application deadline is February 28, 2007.
IRS EXEMPTS LIHTC AND NMTC TRANSACTIONS FROM REPORTABLE TRANSACTION DISCLOSURE RULES
WASHINGTON, D.C. — January 26, 2007
In Revenue Procedure 2007-20, the Internal Revenue Service exempts certain transactions with contractual protection from the disclosure rules under § 1.6011-4(b)(4) of the Income Tax Regulations. The American Jobs Creation Act (AJCA), which became effective October 22, 2004, included important changes to the Internal Revenue Code that had potentially chilling effects on general partners and/or developers of low-income housing tax credit (LIHTC), historic rehabilitation tax credit (HTC) or new markets tax credit (NMTC) partnerships, or properties that previously were thought exempt from reporting as tax shelters under IRC § 6111. Rev. Proc. 2007-20 exempts LIHTC and NMTC transactions, but HTC transactions were not exempted. This revenue procedure also applies for purposes of IRC § 4965.
To discuss the significance of this important development, join Novogradac & Company LLP at its upcoming conferences:
May 17-18 in New Orleans
Credit and Bond Financing Conference
June 6-8 in Washington, D.C.
6th Annual Spring New Markets Tax Credit Conference & Workshops
COMMUNITY DEVELOPMENT INDUSTRY INVITED ASSESS CDFI PROGRAM
WASHINGTON, D.C. — January 19, 2007
The Community Development Financial Institutions (CDFI) Fund yesterday sent a letter to CDFIs encouraging them to participate in a survey being conducted as part of an assessment of the CDFI Program, the training program and the process through which CDFIs are certified. Click here to read the letter that explains how interested CDFIs may participate in the survey.
CDFI FUND NAMES NEW DIRECTOR
WASHINGTON, D.C. — January 18, 2007
U.S. Treasury Secretary Henry M. Paulson today announced the appointment of Kimberly A. Reed as the new director of the Treasury Department's Community Development Financial Institutions (CDFI) Fund. Reed has served as senior adviser to both Paulson and former Treasury Secretary John W. Snow since May 2004. As senior adviser, she provided counsel on key policy matters, including tax and economic issues. Click here for more information.
TREASURY INVITES COMMENT ON NMTC FORMS
WASHINGTON, D.C. — January 16, 2007
The Treasury Department announced today that it is revising two forms: CDFI 0010, New Markets Tax Credit (NMTC) Program Allocation Tracking System (ATS); and CDFI 0011, NMTC Program Allocation Agreement - Disclosure, Audited Financial Statements. The purpose of the NMTC Program ATS is to obtain information on investors making qualified investments in community development entities (CDEs) that receive an NMTC allocation. Entities receiving an NMTC allocation must enter into an allocation agreement with the Community Development Financial Institutions (CDFI) Fund; CDFI 0011 is used to satisfy certain disclosure and reporting requirements contained in that agreement. Written comments on these forms will be accepted through February 15, 2007. Click here for more information.
CDFI FUND PROPOSES PROJECT PROFILES
WASHINGTON, D.C. — January 12, 2007
The Community Development Financial Institutions (CDFI) Fund today invited comments concerning a voluntary information collection effort involving all its programs, including the New Markets Tax Credit (NMTC) program. The CDFI Fund is proposing the voluntary collection of narrative descriptions of projects financed by awardees and allocatees in response to the public's request for better and more narrative information on impact and best practices associated with all of the CDFI Fund's programs. Today’s notice says the purpose of the effort is to more fully describe and record the innovative approaches CDFIs and community development entities (CDEs) use in revitalizing communities and serving families. Awardees and allocatees will be invited to submit narratives on one or more projects that they believe demonstrate best practices or high impact. The CDFI Fund says it plans to use the descriptions in its publications and on its web site to highlight the work of its awardees and allocatees.
NMTC DEADLINE REMINDER
WASHINGTON, D.C. — January 3, 2007
Any entity not yet certified as a community development entity (CDE) that intends to apply for an allocation of new markets tax credits (NMTCs) in the 2007 round must submit a CDE certification application that is postmarked on or before January 12, 2007. The NMTC allocation application deadline is February 28, 2007. Click here for more information.