Legislation to provide an additional $1 billion in new markets tax credit (NMTC) allocation annually for two years was introduced in the U.S. Senate. The Rural Jobs Act (S. 1455) would provide $500 million in allocation in 2023 and again in 2024 for Rural Jobs Zones, which are NMTC-eligible census tracts in rural communities with fewer than 50,000 residents. At least $250 million of the total allocation would be prioritized for persistent poverty counties and high out-migration rural counties. The bill is expected to be introduced in the House of Representatives soon. This is the third consecutive session of Congress in which similar legislation was introduced.
One-hundred and forty-four organizations requested more than $1.1 billion in fiscal year (FY) 2023 round Capital Magnet Fund (CMF) financing, according to an update from the Community Development Financial Institutions (CDFI) Fund released today.
Nevada legislation would increase the overall amount of qualified equity investments and make other changes to the state new markets tax credit (NMTC) incentive. S.B. 240 would add $170 million in in QEI investments made after July 1, 2024, (for which tax credits could not be taken before July 1, 2026) to the total allocation amount and add a definition of “impact qualified active low-income community business” to mean certain types of manufacturing businesses or businesses in which the majority of owners are from certain historically disadvantaged groups. The Nevada NMTC is for 58% of the QEI, with 0% in the first two years, 12% annually in Years 3-5 and 11% annually in Years 6-7.
The Community Development Financial Institutions (CDFI) Fund today announced that it expects to open the new CDFI certification process in the fall. The updated certification process was originally scheduled for this spring, but was postponed in January. Over the coming months, the CDFI Fund will continue to review comments, publish an updated application form, conduct public outreach, enhance the infrastructure on its Awards Management Information System (AMIS) for data and material submission, and institute a grace period for currently certified CDFIs to complete the new certification application. Certified CDFIs are still required to submit an annual certification and data collection report in accordance with their existing schedule.
Bob Ibanez, a senior manager in the public policy group of Novogradac, passed away April 19. Ibanez was an esteemed member of the Novogradac team and a dedicated leader in the field of community development. For five years with Novogradac, Ibanez helped clients in the new markets tax credit (NMTC) and community development financial institutions (CDFI) communities. Before joining Novogradac, Ibanez spent 13 years at the CDFI Fund, the final six as program manager of the NMTC and Bank Enterprise Award programs.
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