New Markets Tax Credit News Briefs – August 2019

Wednesday, August 7, 2019

The Rural Jobs Act was introduced June 27 in the House and Senate to authorize an additional $500 million in annual new markets tax credit (NMTC) allocation for 2019 and 2020 that would go to rural job zones. Those zones are defined as low-income communities with a population of 50,000 residents or less that are not adjacent to any urbanized area. At least 25 percent of the new NMTC allocation authority would be prioritized for counties with persistent poverty and high migration. Lead sponsors of the bicameral and bipartisan legislation are Reps. Terri Sewell, D-Ala., and Jason Smith, R-Mo., and Sens. Mark Warner, D-Va., Roger Wicker, R-Miss., Shelley Capito, R-W.V., and Ben Cardin, D-Md. Both versions of the bill are available at www.newmarketscredits.com.

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The Community Development Financial Institutions (CDFI) Fund June 25 opened the fiscal year 2019 funding round for the Capital Magnet Fund (CMF). Through the CMF, the CDFI Fund makes awards to CDFIs and qualified nonprofit housing organizations to finance affordable housing activities, related economic development activities and community service facilities. The CDFI Fund plans to provide up to $130.8 million in CMF awards this year.  There are multiple deadlines in the application process and the final application is due Aug. 26 at 5 p.m.

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Mascoma Community Development announced June 17 the successful closing of $4.4 million in NMTC allocation to support the renovation of three historic buildings in downtown Bennington, Vt. The former Hotel Putnam, Old Courthouse and Winslow Building will be converted into 74,000 square feet of mixed-use commercial space. That space will include a health clinic, social service health care providers, a local bookshop, café, restaurant, potter, office space and retail space tailored to support a local grocer. There will also be 22 apartments, with six apartments supporting low-income individuals. 

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The Kentucky Department of Revenue announced June 25 that $5 million in 2019 state NMTC allocation authority is available for approval beginning with applications submitted on or after July 15. Applications received before July 15 will be recorded as received July 15. The Kentucky NMTC can be claimed against corporation income tax, individual income tax, limited liability entity tax and insurance premiums tax.

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Legislation to increase the amount of qualified equity investments (QEI) allowed by Nevada’s New Markets Jobs Act was signed by Gov. Steve Sisolak. A.B. 446 adds $200 million in QEIs after July 2–while the previously authorized $200 million is available before that date. The bill stipulates that any QEI made after July 1, 2019, can’t be used for a credit until July 1, 2021. A.B. 446 also increases the amount eligible for a single QEI from $5 million to $8 million and allows two community development entities to jointly make investments. Nevada A.B. 446 is available at www.newmarketscredits.com.

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