New Markets Tax Credit News Briefs – June 2019

Monday, June 10, 2019

The Treasury Department’s second-quarter update to the 2018-2019 Priority Guidance Plan was released April 5. The update includes plans to provide guidance for the low-income housing tax credit average-income test, the use of historic tax credit for disaster relief, regulations to clarify certain rules for the new markets tax credit (NMTC) and guidance on private-activity bonds for affordable housing. The Priority Guidance Plan covers the period from July 1, 2018, through June 30, 2019, and the update includes projects published or released in the quarter ending Dec. 31, 2018. Of the 239 guidance projects in the 2018-2019 Priority Guidance Plan, 44 were completed before the publication of the update, including the first tranche of guidance on the opportunity zones incentive.

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Legislation introduced March 25 in Nevada would revise the state’s NMTC. A.B. 446 would allow a community development entity (CDE) to make a qualified low-income community investment jointly with another CDE, including with money from investments made in a CDE for which the entity received tax credits. The legislation would also allow a business that has received certain abatements from taxation to be eligible as a qualified active low-income community business.

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