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New Markets Tax Credit News Briefs – May 2019

The Community Development Financial Institutions (CDFI) Fund provided an updated frequently asked questions (FAQs) document March 29 for compliance with the New Markets Tax Credit (NMTC) program. The new document, which supersedes the May 2017 FAQs document, includes information on some Award Management Information System reporting requirements, the definition of “housing unit” to clarify the forms of affordable housing that can be financed, new information on how to determine whether a property is in a food desert and more. The FAQs document is available at www.newmarketscredits.com. 

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Legislation to extend the state NMTC program 18 months was approved by Mississippi Gov. Phil Bryant March 21. S.B. 2598 would extend the program until July 1, 2021. It was set to expire Jan. 1, 2020. The bill is available at www.newmarketscredits.com.

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The CDFI Fund released the annual report on its activities April 1. ’18: A Year of Investment reports that the CDFI Fund provided roughly $3.5 billion in NMTC allocations, as well as $345 million in awards and loans and $150 million in bond guarantees. According to the report, CDFI program awardees reported more than $11 billion in lending and investment activity, financing nearly 16,000 businesses and more than 33,000 affordable housing units.

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A bipartisan group of four U.S. Senators introduced legislation March 13 to establish a tax credit and grant program to stimulate investment in healthy options in food deserts. S. 786, the Healthy Food Access for All Americans Act, would create a credit for 15 percent of the basis of a qualified grocery store, 10 percent of renovations or an allocation from the Secretary of Agriculture for special access food providers. The legislation includes certification requirements and recapture rules. S. 786 was assigned to the Finance Committee.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

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