Proposal Could Expand Number of NMTC Eligible Census Tracts

Published by Michael Novogradac on Friday, January 10, 2014 - 12:00am

Late last month, Rep. Jim Costa, D-Calif., introduced H.R. 3809, which would allow certain census tracts for which information is not available to be treated as low-income communities for purposes of the new markets tax credit (NMTC). The bill would qualify for the NMTC program census tracts that are adjacent to two or more low-income communities and for which the Treasury Secretary does not have information indicating that the tracts are not low-income communities.

There are 74,002 total census tracts. According to the Community Development Financial Institutions (CDFI) Fund, there are 967 census tracks for which income or population data are not available. While this is a small number relative to total census tracts – approximately 1.3 percent – if enacted, the bill could expand the economic benefits created by the NMTC by making additional communities eligible for NMTC investment.

Reps. Costa, Jeff Denham, R-Calif., and Dennis Cardoza, D-Calif., introduced a similar proposal in the 112th Congress as H.R. 2740, but it did not gain traction at the time. Upon introduction, H.R. 3809 was referred to the House Ways and Means Committee.

To determine if a census tract is eligible for the NMTC program, check out the Novogradac NMTC Mapping Tool. The online tool can be searched by congressional district, address, city, county, state or ZIP code.

And to learn about the prospects for H.R. 3809 and other NMTC legislation, join more than 500 community development professionals at the Novogradac New Markets Tax Credit Conference in San Diego, Jan. 23-24.