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GAO Letter Updates CDFI Fund Plans to Address 2014 Recommendation on NMTC, Other Federal Funding

Thursday, June 2, 2022 - 9:15AM

The Government Accountability Office (GAO) sent a letter to Treasury Secretary Janet Yellen in May with updates on policy recommendations, including an update on a 2014 recommendation concerning the new markets tax credit (NMTC) incentive. In the letter, the GAO references the 2014 recommendation that Treasury issue guidance on how funding or assistance from other government programs can be combined with the NMTC, including the extent to which those funds can be used to leverage the NMTC by being included in the qualified equity investment (QEI). The letter highlights that the Community Development Financial Institutions (CDFI) Fund plans to solicit public comments on additional data to be collected from community development entities (CDEs) which would be used to identify NMTC-financed properties that may have excessive public funding. That information would inform actions to respond to the intent of the 2014 recommendations.

The Novogradac New Markets Tax Credit Handbook is a definitive guide to the NMTC incentive, from application and financing to development and compliance.

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