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New Markets Tax Credit News Briefs – April 2020
Community Development Financial Institutions (CDFI) Fund announcements related to COVID-19 are available at www.novoco.com/coronavirus.
A bill introduced in the California Assembly Feb. 21 would create a state-level new markets tax credit (NMTC). A.B. 3101 would create a California NMTC for taxable years beginning on or after Jan. 1, 2021, and would expire Jan. 1, 2026. The incentive would have a statewide annual cap of $100 million. The bill would authorize allocation for the credit only when the state Legislature appropriates funds for it. The California NMTC would allow taxpayers 6 percent of the state NMTC for Years 1, 2, 4, 5, 6 and 7 and 3 percent for Year 3.
The CDFI Fund Feb. 21 published a notice of funds availability for both the Native American CDFI Assistance (NACA) and CDFI programs. Through the NACA and CDFI programs, the CDFI Fund awards up to $1 million to certified CDFIs to serve their markets as well as a variety of grants. The NACA program is estimated to award $40.5 million and the CDFI program will award an estimated $184 million in fiscal year 2020. The deadline to submit applications for funding is April 21.
The CDFI Fund awarded $130.9 million to 38 organizations Feb. 25 for the development of affordable housing and community facilities in low-income communities through the fiscal year 2019 round of the Capital Magnet Fund. The awards support financing for preservation, rehabilitation, development or purchase of affordable housing for low-income communities. The funds also contribute to economic development and community service facilities such as day care centers, workforce development centers and health care clinics. Awardees are required to leverage awards with other private and public investment by at least 10 to 1, guaranteeing that a minimum of $1.3 billion will be invested in eligible projects.