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Community Development Financial Institutions (CDFI) Fund Director Pravina Raghavan today announced that the calendar year (CY) 2024 and 2025 rounds of new markets tax credit (NMTC) allocation authority will be combined into a single $10 billion round. In a memo announcing several CDFI Fund achievements, Raghavan said the combined NMTC round will open later this fall and the allocation application deadline will be in early 2025, with allocations announced in the fall of 2025.

More than $66 billion in new markets tax credit (NMTC) investments were made over the 20-year period that ended in 2022, according to a summary report released today by the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund’s annual summary report and data covers NMTC investments from fiscal year (FY) 2003 through FY 2022 and is based on reports from community development entities (CDEs) that were awarded NMTC allocation.

The Community Development Financial Institutions (CDFI) Fund will publish a notice in Monday’s Federal Register seeking comment on proposed changes to the Capital Magnet Fund (CMF) performance report. The CDFI Fund is for the first time separating the approval for the performance report from that of the CMF application, for which a notice was published earlier this week. Proposed changes in the performance report include the elimination of certain requests for information and changes to provide clarification and consistency in instructions. Comments are due Aug. 30.

The Community Development Financial Institutions (CDFI) Fund will publish in Tuesday’s Federal Register an interim rule and request for public comments concerning the Capital Magnet Fund. The interim rule proposes revisions to definitions and program requirements, revisions to project-level requirements, updates to address business practices in affordable housing and the consolidation of economic development activities under a new section for a more comprehensive articulation of such criteria. The interim rule is effective Tuesday with comments accepted through Aug. 26. The current version of the rule is an interim rule that went into effect in 2016.

Nevada will accept applications for the 2023 allocation of tax credits as part of the Nevada New Markets Jobs Act (Nevada NMJA) as of July 1. The director’s office of the Nevada Department of Business and Industry made the application form available on its website today. The Nevada NMJA functions as a state-level new markets tax credit (NMTC).

Organizations requested more than $1 billion in funding through the Community Development Financial Institutions (CDFI) Fund’s Capital Magnet Fund (CMF) program for the fiscal year 2024 round, more than four times the amount available. The CDFI Fund announced today that 136 organizations submitted applications by the April 16 deadline, requesting more than $1.06 billion in funding.

Legislation in Mississippi that would have created a state new markets tax credit (NMTC) to replace the existing state incentive that expires in July died in conference.

Legislation introduced in the Mississippi Senate would create a state new markets tax credit (NMTC) incentive to replace the existing state NMTC that expires in July. S.B. 3070 would create an NMTC worth 48% of qualified equity investments (QEIs), taken 16% per year for the first three credit years, for investments in businesses with principal operations in Mississippi.

President Joe Biden’s fiscal year 2025 budget proposal request, which was posted today, includes provisions to enhance the low-income housing tax credit (LIHTC) and tax-exempt private activity bonds (PABs), establish the neighborhood homes tax credit (NHTC) and make permanent the new markets tax credit (NMTC). The U.S. Department of the Treasury released the annual “Greenbook,” which explains the revenue proposals.

Pravina Raghavan was announced today as director of the Community Development Financial Institutions (CDFI) Fund, beginning immediately. The CDFI Fund oversees the new markets tax credit (NMTC) incentive, as well as the Capital Magnet Fund (CMF) and other community development funding activities.

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