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West Virginia Legislation Would Create State NMTC Worth 60% of QEIs

Wednesday, January 18, 2023 - 4:45PM

Legislation in the West Virginia Senate would create the West Virginia New Markets Job Act, which could go to community development entities (CDEs) that receive federal NMTC allocation authority. Under S.B. 95, West Virginia CDEs would receive a 60% credit for qualified equity investments (QEIs), taken in four equal annual installments of 15% beginning with the fourth year. The legislation provides a cap of $5 million in QEIs per qualified active low-income community business (QALICB) and a statewide cap of $60 million annually in QEIs against which the credits can be taken. Under the legislation, the state would begin accepting applications for NMTC allocation authority July 1 and awards would be granted on a first-come, first-served basis.

The Novogradac Introduction to New Markets Tax Credits booklet provides an initiation into the workings of the NMTC.

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