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Treasury Responds to Congressional Letter Requesting NMTC Awards be Made by 2025

Friday, February 23, 2024 - 10:39AM

A representative of the U.S. Department of the Treasury sent a response this week to a letter dated Sept. 23, 2023, from the lead Congressional sponsors of the New Markets Tax Credit (NMTC) Extension Act of 2023. The Congressional letter requested Treasury ensure all authorized NMTC allocations are disbursed by the end of 2025 as intended by Congress. The response in the Treasury letter said Treasury and the Community Development Financial Institutions (CDFI) Fund are “working diligently to award the NMTC allocations in a timely manner.” The Congressional letter highlighted that the CDFI Fund’s award announcements are currently being awarded after the year for which they’re authorized and emphasized the need for timely allocation awards. In a letter to the CDFI Fund dated Feb. 3, 2023, the NMTC Working Group also emphasized the importance of more timely allocation of NMTC awards and the benefits doing so would have for businesses in distressed communities.

The calendar year 2023 round of allocations–expected to be awarded in late summer or early fall– and the remaining $10 billion of allocation currently authorized will be topics of discussion at the Novogradac 2024 Spring New Markets Tax Credit Conference, June 6-7, in Washington, D.C.

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