CDFI Fund Extends Lookback Period for NMTC Allocatees to Dec. 31, 2022
The Community Development Financial Institutions (CDFI) Fund this week sent a letter to new markets tax credit allocatees with calendar year (CY) 2015-2020 allocation agreements announcing a change to extend the 36-month lookback period to Dec. 31, 2022. The lookback period previously included transactions closed by May 31. The CDFI Fund change applies to documented reasonable expenditures outlined in Section 3.3(j)(i) of the allocation agreement–a period increased from 24 months to 36 months before the qualified low-income community investment (QLICI) closing date–for QLICIs closed between June 1, 2020, and Dec. 31, 2022.
The New Markets Tax Credit Working Group requested the CDFI Fund make the change in March. Working group members identified many transactions in which businesses affected by the COVID-19 pandemic would have been negatively impacted if an extension wasn’t granted as the effects of the pandemic continue. The NMTC Working Group works together to help resolve technical regulatory and administrative NMTC issues and provide recommendations to make the NMTC incentive more efficient.
A panel with insights from the CDFI Fund will be featured at the Novogradac 2022 Spring New Markets Tax Credit Conference, June 9-10 in Washington, D.C.