New Market Tax Credit News Briefs - December 2022
Nearly $60 billion in new markets tax credit (NMTC) investments were made through fiscal year 2020, according to data and a summary report released Oct. 13 by the Community Development Financial Institutions Fund (CDFI Fund). The summary reported that $59.2 billion in NMTC investments were made from 2003 through 2020, including $2 billion in qualified equity investments by community development entities (CDEs). The report said that NMTC financing has helped build or rehabilitate more than 270 million square feet of commercial real estate and there has been more than $24 billion in investments in community facility projects. More than 600,000 construction jobs and more than 300,000 permanent jobs were created through the NMTC from 2003-2020, according to the report.
The CDFI Fund published in the Oct. 20 Federal Register a notice and request for comment concerning pre-approval target market assessment methodologies used in the CDFI certification process. The CDFI Fund intends to publish a list of pre-approved target market assessment methodologies that CDFIs may use to demonstrate they are serving their identified target markets. The notice requests feedback on the proposed list of methodologies. Comments must be submitted in writing by Dec. 19.
The CDFI Fund Oct. 4 announced a preview of the revised certification application, annual certification and data collection report, and data collection mechanisms for CDFIs. The preview came ahead of the Office of Management and Budget (OMB) seeking public input for 30 days on the revisions. The OMB request is the final opportunity for input before the changes are implemented in April 2023. Substantial updates were made to the application and the reporting requirements since the first round of revisions were proposed in 2020, many changes due to comments submitted to the CDFI Fund. The CDFI Fund is in a blackout period for the submission of all new CDFI certification applications as it completes the build out of the application in the Awards Management Information System.
Climate by Design International received Oct. 25 a $10 million allocation in NMTCs from Mascoma Community Development for its new 200,000 square foot headquarters facility in Owatonna, Minnesota. The endeavor aims to expand the firm’s industrial and manufacturing capabilities as well as create 100 jobs. U.S. Bank invested in the NMTCs for the property, which is in an opportunity zone.