CDFI Fund, IRS Designate Targeted Populations, Including from Hurricane Katrina

Friday, June 30, 2006 - 12:00pm

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.