NMTC Eligibility Reminder: Deadline Nears for Census Switch

Published by Michael Novogradac on Friday, June 7, 2013 - 12:00am

Revised eligibility criteria for the New Markets Tax Credit program will go into effect in less than a month, on July 1. The Community Development Financial Institutions (CDFI) Fund released the updated information in May 2012 and gave community development entities (CDEs) more than a year to adjust to the 2010 qualified communities.

From May 1, 2012 through June 30, 2013, CDEs that already had allocation on May 1, 2012 could use the 2000 census data or the 2006-2010 ACS data to determine if an area qualified for the economic development program.

At the end of this month and going forward, CDEs will be required to make investments only in communities in census tracts that qualify for the program under the 2006-2010 American Community Survey income and poverty data.

To aid in the transition, we currently provide two versions of the Novogradac NMTC Qualifying Census Tracts Mapping Tool: one with the previous data, and another with the updated 2006-2010 ACS eligibility data.

If you have questions about this transition, I encourage you to contact my colleague Brad Elphick, CPA, in Novogradac & Company’s Atlanta office.