Nov. 14, 2023: Key Takeaways from the New CRA Regulations
The three agencies that oversee the Community Reinvestment Act (CRA)–designed to ensure banks invest in the low- and moderate-income areas where they receive deposits–released their final regulations Oct. 24, making the first substantial change to CRA regulations since 1995. In this week’s Tax Credit Tuesday, Michael Novogradac, CPA, and Peter Lawrence, Novogradac’s director of public policy and government relations, discuss the new CRA regulations and how they may affect various tax incentives. They begin by looking at the provisions of the final rule, then discuss the implications for the low-income housing tax credit (LIHTC) and new markets tax credit (NMTC) before moving on to see how the regulations might affect the historic tax credit (HTC), renewable energy tax credits (RETCs) and the opportunity zones (OZ) incentive. After that, they discuss the possible timeline and share resources about the coming changes.