New Markets Tax Credit News Briefs – March 2020
Friday, March 6, 2020
Four senators introduced bipartisan legislation Jan. 8 that would require that 10 percent of the annual new markets tax credit (NMTC) allocation be made to community development entities (CDEs) for investment in developments in Indian and Native lands. Sens. Lisa Murkowski, R-Alaska; Dan Sullivan, R-Alaska; Brian Schatz, D-Hawaii; and Mazie Hirono, D-Hawaii, introduced the Inspiring Nationally Vibrant Economies Sustaining Tribes Act of 2020, which defines what CDEs must do to meet requirements to receive allocations and provides a definition for Native community development financial institutions. The bill would also establish a technical assistance pilot program to help Indian CDEs apply for NMTC allocations.
House Ways and Means Democrats Jan. 29 released a five-year, $760 billion infrastructure framework called Moving Forward. The framework would expand existing infrastructure tax credits and create new credits to improve infrastructure investment, including investments driven by the NMTC, low-income housing tax credit (LIHTC) and historic rehabilitation tax credit. The Ways and Means Committee also held a hearing about the framework and heard from five witnesses about the importance of expanding and improving infrastructure.
House Appropriations Committee Chairwoman Nita Lowey, D-N.Y., Jan. 29 introduced the Emergency Supplemental Appropriations for Disaster Relief and Puerto Rico Disaster Tax Relief Act of 2020 (H.R. 5687). The bill would provide assistance to Puerto Rico after recent earthquakes by increasing the annual NMTC allocation authority by $500 million in 2020 and 2021. The additional allocation authority would be for CDEs with a history of making qualified low-income community investments in federally declared disaster areas or Puerto Rico. The bill would also increase the LIHTC ceiling for Puerto Rico by $50 million for calendar year 2020 and provide $3.26 billion through the Community Development Block Grant-Disaster Recovery program for disaster relief, restoration of infrastructure and housing, and economic revitalization–with $1.53 billion set aside for mitigation in areas that experiences major disasters in 2018 and 2019.
The Innovate Fund announced Jan. 31 the allocation of $15 million in NMTCs for the acquisition and renovation of the former Baldor Electric facility in Clio, S.C., into a manufacturing plant for use in the multifamily housing industry. The development is within a census tract that has a 30.9 percent poverty rate and a 24.3 percent unemployment rate. Once completed, the development is expected to create 140 direct jobs. Arris Manufacturing LLC will acquire and rehabilitate the building into a manufacturing facility to produce modular housing units, which will be used to build multifamily housing developments.
Tax Advantage Group LLC announced Jan. 6 the award of $9.5 million in NMTCs for the Boys & Girls Club of Cabarrus County in Concord, N.C. The financing will be used to expand the facility to include seven classrooms, a STEM teaching lab and dedicated space for teens to encourage older participants to remain engaged with the club through high school. The project will nearly double annual student participation from 450 to 700 students and will increase summer programming capacity from 1,300 to 2,220 participants.
New Markets Tax Credit