News:
2011
June
CDFI FUND RELEASES ELECTRONIC NMTC APPLICATION, INSTRUCTIONS
WASHINGTON, D.C. - June 27, 2011
The Community Development Financial Institutions (CDFI) Fund today made available the electronic application for the 2011 round of the New Markets Tax Credit (NMTC) program available to potential applicants through their myCDFIFund accounts. The CDFI Fund also released instructions for the 2011 allocation application round.
Get the inside track on the 2011 NMTC application round by viewing a recording of Novogradac & Company’s NMTC application webinar. If you are interested in additional assistance, please contact Novogradac & Company’s NMTC team.CDE CERTIFICATION DEADLINE NEARS FOR 2011 NMTC APPLICANTS
WASHINGTON, D.C. - June 21, 2011
Organizations interested in applying for the 9th round of new markets tax credits (NMTCs) are reminded that the deadline to apply for certification as a community development entity (CDE) is tomorrow. In order to be eligible to apply for an allocation of NMTC authority in the 2011 round, applicants must have submitted applications for CDE certification by June 22.
IRS PROPOSES CHANGES TO NEW MARKETS TAX CREDIT REGULATIONS
WASHINGTON, D.C. - June 3, 2011
The Internal Revenue Service today released proposed regulations that would modify the new markets tax credit (NMTC) to facilitate and encourage investments in non-real estate businesses in low-income communities. The IRS will accept public comments on the proposed rules and other potential changes designed to promote greater investment in non-real estate operating businesses. Public comments will be accepted until September 8, 2011. A public hearing on the proposed regulations is scheduled for September 29, 2011.
It’s not too late to join Novogradac & Company for the New Markets Tax Credit Spring Conference June 9-10 and the Pre-Conference NMTC Application Workshop on June 8 in Washington, D.C.May
2011 COMPETITION FOR NEW MARKETS TAX CREDIT ROUND OPENS
WASHINGTON, D.C. - May 31, 2011
The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) today announced the release of the notice of allocation availability (NOAA) for the 2011 round of competition for $3.5 billion in tax credits under the New Markets Tax Credit (NMTC) Program. The CDFI Fund has also released a copy of the 2011 NMTC application and an application Q&A. Applications for the 2011 allocation round are due by July 27, 2011. Allocation applicants that are not yet certified as CDEs must submit an application for certification as a CDE on or before June 22, 2011 to be eligible for an NMTC allocation in the 9th round. Application information will also be posted online at www.newmarketscredits.com.
In addition to the information available through the NOAA and NMTC application, the CDFI Fund announced that it has recorded an application workshop that will be available for viewing on June 13. The CDFI Fund will also conduct two one-hour conference calls on June 15 and June 21 to answer applicant questions.
In the meantime, there is still time to join Novogradac & Company for the New Markets Tax Credit Spring Conference June 9-10 and the Pre-Conference NMTC Application Workshop on June 8 in Washington, D.C.
IRS INVITES COMMENTS ON NMTC REGULATIONS
WASHINGTON, D.C. - May 27, 2011
The Internal Revenue Service (IRS) today published a notice inviting comments concerning existing final regulation, T.D. 9171, New Markets Tax Credits. These regulations finalize the rules relating to the new markets tax credit under Internal Revenue Code Section 45D. There are no changes proposed to the existing regulation at this time; the invitation to comment was issued as part of the effort to reduce paperwork and respondent burden as required by the Paperwork Reduction Act of 1995. Written comments should be received on or before July 26, 2011 to be assured of consideration.
Current and pending NMTC regulations are among the many topics that will be discussed at Novogradac & Company LLP’s New Markets Tax Credit Spring Conference June 9-10 in Washington, D.C.SENATORS PROPOSE FIVE-YEAR NEW MARKETS TAX CREDIT EXTENSION
WASHINGTON, D.C. - May 13, 2011
Sen. John D. (Jay) Rockefeller, D-W.V., yesterday introduced S. 996, the New Markets Tax Credit Extension Act. The bill would extend the new markets tax credit (NMTC) through 2016 at a level of $5 billion each year. The bill is currently cosponsored by Sens. Olympia Snowe, R-Maine; Jeff Bingaman, D-N.M.; Patrick Leahy, D-Vt.; Charles Schumer, D-N.Y.; John Kerry, D-Mass.; and Scott Brown, R-Mass. Upon introduction, S. 996 was referred to the Senate Finance Committee. As soon as the text of the bill is available, it will be posted online at www.newmarketscredits.com.
Join community development experts for the Spring New Markets Tax Credit Conference, June 9-10 in Washington, D.C. to hear more about efforts to extend the NMTC, as well as the latest information about the upcoming allocation application round.
In the meantime, tune in to the Tax Credit Tuesday podcast on May 17 to hear more about S. 996.
NMTC PROGRAM RECOGNIZED AS INNOVATIVE
WASHINGTON, D.C. - May 4, 2011
The New Markets Tax Credit (NMTC) program today has been named as one of 25 programs that will compete for the 2010 Innovations in American Government Award. The Ash Institute for Democratic Governance and Innovation at Harvard University’s John F. Kennedy School of Government selected the NMTC program from 500 applicants and will announce five finalists and one winner in the fall.
The NMTC program will be discussed at the Spring New Markets Tax Credit Conference, June 9-10 in Washington, D.C.March
NEW YORK PASSES BUDGET, AUTHORIZES NMTC USE
WASHINGTON, D.C. - March 31, 2011
The New York Legislature and Gov. Andrew Cuomo passed a 2011-2012 state budget early this morning. The $132.5 billion budget includes several tax credit provisions. Among other things, New York’s budget bill authorizes the Empire State Development Corporation to finance up to $30 million in federal New Market Tax Credits to support job creation and development efforts in low-income communities through the state.
BILL INTRODUCED TO ALLOW NMTC TO BE CLAIMED AGAINST AMT
WASHINGTON, D.C. - March 11, 2011
Ways & Means Committee Democrats introduced a bill yesterday that would allow new markets tax credits to be claimed against the alternative minimum tax (AMT). In addition, H.R. 992, the Building American Jobs Act of 2011 would, among other things, extend the Build America Bonds program through 2012, allocate additional Recovery Zone bonds, exempt private activity bonds from the alternative minimum tax (AMT), extend the Section 1602 low-income housing tax credit exchange program through 2011 and extend Federal Home Loan Banks’ ability to guarantee tax-exempt bonds through 2011. The bill was referred to the House Committee on Ways and Means. Twenty-two organizations sent a letter to the Ways & Means Committee Democrats in support of the legislation.
February
CDFI FUND AWARDS $3.5 BILLION IN NMTC ALLOCATION AUTHORITY
BALTIMORE - February 24, 2011
Community Development Financial Institutions (CDFI) Fund Director Donna Gambrell today announced the 99 community development entities (CDEs) selected to receive $3.5 billion in tax credits under the eighth round of the New Markets Tax Credit (NMTC) program.
The 99 organizations receiving awards were selected from a pool of 250 applicants that requested over $23.5 billion. They are headquartered in 27 different states and the District of Columbia; but have identified principal service areas that will cover nearly every state in the country, as well the District of Columbia. A list of the organizations selected and additional information about today’s announcement can be found on the CDFI Fund's web site.
Links to information from all eight NMTC allocation rounds to date can also be found online at www.newmarketscredits.com.
CDFI FUND TO ANNOUNCE $3.5 BILLION IN NMTC AWARDS THURSDAY
WASHINGTON, D.C. – February 23, 2011
Community Development Financial Institutions (CDFI) Fund Director Donna Gambrell and Congressman Elijah Cummings will announce the 2010 New Markets Tax Credit (NMTC) Program awards in Baltimore on Thursday, February 24 at 11 a.m. Eastern Time.
The announcement will be made at Humanim, a not-for-profit organization that provides workfhorce development services to low-income individuals. The CDFI Fund says that Humanim Inc., having benefitted from the NMTC, highlights the effectiveness of the new markets tax credit in leveraging private investment to complete real estate, local business and other development projects in communities with high rates of poverty and unemployment. Four Baltimore-area institutions will receive tax allocations under the program in this NMTC award round.
More information will be available at www.newmarketscredits.com after the awards announcement.
NMTC WORKING GROUP RELEASES CDE BOARD ACCOUNTABILITY RECOMMENDED PRACTICES
SAN FRANCISCO, Calif. – February 16, 2011
The Novogradac New Markets Tax Credit Working Group yesterday released the final versions of its CDE Board Accountability Recommended Practices and a sample certification form. These documents are intended to help create a standard for certifying a community development entity’s (CDE’s) board’s accountability to the low-income communities it serves. For questions about these documents, or to learn more about the Working Group, go to www.nmtcworkinggroup.com.
January
OBAMA ADMINISTRATION TO PROPOSE EXPANSION OF NEW MARKETS TAX CREDIT
WASHINGTON, D.C. – January 31, 2011
The White House today announced the launch of the Startup America Partnership, which is described as a coordinated public/private initiative to accelerate high-growth entrepreneurship. As part of today’s announcement, Gene Sperling, director of the National Economic Council and assistant to the president for economic policy, confirmed reports that the Obama Administration’s fiscal 2012 budget will propose an expansion of the New Markets Tax Credit (NMTC) program to $5 billion from $3.5 billion to encourage investments in startup companies and small businesses based in low-income areas. In an online fact sheet about the initiative, the White House announced that the Treasury Department will host a March 2011 conference to explore access to capital for small businesses. Details about these proposals are expected in the coming weeks and information will be posted to www.newmarketscredits.com as soon as it becomes available.
BILL WOULD LIMIT TAX CREDIT USERS CAMPAIGN CONTRIBUTIONS
JEFFERSON CITY, Mo. – January 21, 2011
Mo. State Senator Jason Crowell, R-Cape Girardeau, introduced S.B. 141 on Wednesday. The bill would prohibit anyone who has made a campaign contribution in the past two years from applying for state credits. The bill would also prohibit tax credit recipients from making campaign contribution for two years after they receive the state tax credits. Violation of the campaign contribution restrictions would result in recapture of the state tax credits. The act would apply to more than two dozen existing state tax credit programs, including the state historic tax credit, low-income housing tax credit, new markets tax credit, distressed areas land assemblage tax credit and brownfield redevelopment tax credit. Crowell also introduced several other tax credit related bills on Wednesday, including S.B. 139, which would subject all state tax credits to appropriation. If passed, all of the bills would have an August 28, 2011 effective date.
CDFI FUND RELEASES FY 2010 PERFORMANCE REPORT
Washington, D.C. – January 18, 2011
The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund today released its fiscal year (FY) 2010 Performance and Accountability Report (PAR). The PAR reports that the CDFI Fund announced funding under the Community Development Capital Initiative and the Capital Magnet Fund, launched the Capacity Building Initiative and certified or recertified approximately 200 entities as CDFIs. A copy of the FY 2010 PAR can be found on the Reports page of the New Markets Tax Credit Resource Center.