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New Markets Tax Credit News Briefs - December 2023

The Community Development Financial Institutions (CDFI) Fund released Oct. 23 a notice of allocation availability for the calendar year (CY) 2023 round of the new markets tax credit (NMTC). Up to $5 billion in allocation authority is available and the NMTC application deadline is Dec. 19. The deadlines to submit applications for community development entity certification and register in the CDFI Fund’s Awards Management Information System (AMIS) for the NMTC application were in November. Qualified equity issuance and qualified low-income community investment requirements are due March 21, 2024. The CDFI Fund announced revisions to its calendar year 2023 NMTC application instructions and application FAQs.

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The CDFI Fund announced Oct. 12 that it has made available a recorded webinar on how to complete a certification of material events form in AMIS. The form is required for specific material events which must be reported for several programs overseen by the CDFI Fund, including the NMTC incentive, CDFI Bond Guarantee program, CDFI Program/Native American CDFI Assistance program and more. Earlier this month, the CDFI Fund provided supplemental information on completing the form and the webinar is intended to complement that guidance.

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The CDFI Fund in October issued a pair of reports about its year-and-a-half-long NMTC Native Initiative to inspect how the NMTC may be better used on tribal and Indigenous lands. One report was a market research report, which sought to bring together a multitude of sources to better ascertain how tribes and Native communities successfully participate in economic development. The second report was a collection of case studies. Additionally, the CDFI Fund released a guide for native organizations to better use the NMTC program.

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NMTC equity is part of an $11 million construction of the Wisconsin Aluminum Foundry’s (WAF’s) 50,000-square-foot foundry and 12,000-square-feet of new office space in Manitowoc, Wisconsin. Financier Cinnaire anticipates the development will bring 80 new jobs to the area. The facilities will allow WAF to expand, with more manufacturing and office square space footage. The foundry is slated for completion in March 2024; the office remodel is due for completion in October 2024.

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The Economic Opportunity Coalition, a group of nearly 30 private-sector companies and foundations aiming to invest in underserved communities, announced plans Oct. 25 to secure $3 billion in deposits for CDFIs and minority depository institutions. The Biden administration challenging companies in Investing in America sectors such as semiconductor manufacturing, clean energy manufacturing, transportation, heavy industry and biomanufacturing to boost domestic supply chains by committing to at least 15% of their U.S.-based contract spending on goods and services from small and underserved businesses by 2025.

Journal Category:

New Markets Tax Credit

Authors:

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