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New Markets Tax Credits News Briefs - July 2010

The Community Development Financial Institutions (CDFI) Fund received a total of 250 applications in the 2010 round of the New Markets Tax Credit (NMTC) program, indicating that demand for NMTC allocations remains strong. The applications requested an aggregate total of more than $23.4 billion in NMTC allocation authority. Pending congressional approval, $5 billion is available for this round. The deadline to apply was June 4. The CDFI Fund plans to announce the allocatees in December. More information is available on the CDFI Fund’s web site at


The Novogradac Community Development Foundation (NCDF) is accepting nominations for its Third Annual Community Development Awards, which recognize individuals and community development entities for special achievement in the community development field. Categories for individual awardees include Federal Legislator of the Year, State Legislator of the Year and Public Executive of the Year. The qualified low-income community investments (QLICIs) that are honored are small business, operating business, real estate, metro and non-metro QLICIs. Nominations must be submitted through NCDF’s web site on or before August 15. Visit for more information and to complete a nomination form.


Advantage Capital Partners provided $9.75 million in financing for a $21.9 million project to reopen a brick manufacturing plant in Mexico, Mo. Mid America Brick & Structural Clay Products LLC will use funding from Advantage Capital, Rand Capital, Environmental Liability Transfer and other investors to acquire, re-commission and operate the former A.P. Green plant as a face brick manufacturing facility. Advantage Capital will utilize both state and federal NMTCs to help finance the project. The plant, which was at one time one of the largest refractory brick manufacturers in the country, will produce nearly 60 million bricks annually and create approximately 80 jobs when it becomes fully operational in 2011.


National Trust Community Investment Corporation (NTCIC) made a $10 million NMTC investment to redevelop The Laurel Building in St. Louis, Mo. into a 212-unit Embassy Suites Hotel. Total project cost is $86.6 million. Investors, including Urban Action Community Development, Morgan Stanley and Central Bank of Kansas City, leveraged nearly $57 million in historic tax credits, brownfield tax credits, and federal and state NMTCs. US Bank Community Development Corporation was the tax credit investor. The Laurel Building, a former department store built in 1919, is expected to create more than 1350 jobs and will be developed to meet Leadership in Energy and Environmental Design silver certification standards.


Rep. John Yarmuth, D-Ky., introduced legislation in May to incentivize investment in the commercial real estate market by offering investors a significant capital gains tax cut. H.R. 5263, the Real Estate Investment Incentive Act of 2010, proposes reducing investors’ capital gains tax rates from the current 15 percent to 5 percent if they buy commercial real estate this year. The National Association of Realtors is endorsing the bill based on its anticipated benefit to the housing market. Download a copy of H.R. 5263 at


The federal bank and thrift regulatory agencies announced the 2010 list of distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities will receive Community Reinvestment Act (CRA) consideration as community development. The list incorporates a one-year lag period for geographies designated as distressed or underserved in 2009, but not designated as such in the 2010 release. Geographies subject to this one-year lag period are eligible to receive consideration for community development activities for 12 months after publication of the 2010 list. See this year’s list and lists from previous years on the Federal Financial Institutions Examination Council’s (FFIEC’s) web site at

Journal Category:

New Markets Tax Credit



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