The Community Development Financial Institutions Fund has released additional guidance regarding Treasury Decision (TD) 9600 issued by the Internal Revenue Service on September 28, 2012. The TD 9600 Frequently Asked Questions (FAQ) document covers programmatic and reporting changes to the New Markets Tax Credit Program regarding small business investments necessitated by the revised regulations. The guidance addresses the following questions:
- What is TD 9600?
- When does TD 9600 become effective?
- Who does TD 9600 affect immediately?
- How do I designate an equity investment as a “non-real estate qualified equity investment”?
- In light of TD 9600, how do the definitions of “Real Estate QALICB” and “Non-Real Estate QALICB” appear in the 2012 Allocation Agreement?
- How will the updated definitions of “Real Estate QALICB” and “Non-Real Estate QALICB” in the 2012 Allocation Agreement affect CIIS reporting?
- What (if any) additional changes will be made to CIIS 11.0 based on TD 9600?
- How will the updated definitions of “Real Estate QALICB” and “Non-Real Estate QALICB” in the 2012 Allocation Agreement and CIIS 11.0 affect how compliance is measured with pre-2012 allocation agreements?
- How will the updated definitions of “Real Estate QALICB” and “Non-Real Estate QALICB” in the 2012 Allocation Agreement and CIIS 11.0 affect how compliance is measured for CDEs with a 2012 Allocation Agreement (or later)?
- If you wish to take advantage of the provisions outlined in TD 9600, how should you
report your investments in the CDFI Fund’s Community Investment Impact System (CIIS)?
Click here to view the FAQ document.
