New Markets Tax Credit (NMTC)

The Community Development Financial Institutions (CDFI) Fund recently updated the low-income community eligibility data for the New Markets Tax Credit (NMTC) program. This new data is based on income and poverty data provided by the Census Bureau’s 2006-2010 American Community Survey (ACS) for the 2010 census tracts.

The Internal Revenue Service (IRS) recently released final regulations, RIN 1545-BK04, modifying the reinvestment requirements of the New Markets Tax Credit (NMTC) program to encourage investments in non-real estate businesses for working capital and equipment.

The Community Development Financial Institutions (CDFI) Fund has announced that it received 282 applications for the 2012 New Markets Tax Credit (NMTC) application round. The community development entities (CDEs) requested a combined $21,901,474,907 in allocation authority and are headquartered in 44 states, the District of Columbia and Puerto Rico.

The National Housing & Rehabilitation Association (NH&RA) has announced five winners and ten finalists across ten competitive categories for this year’s J. Timothy Anderson Awards for Excellence in Historic Rehabilitation. The “Timmy Awards” will be presented at an awards luncheon and ceremony on Tuesday, October 30 at the Langham Hotel in Boston, Massachusetts, held in conjunction with the association’s Annual Fall Developers Forum. The winners and finalists represent fourteen different communities in ten states””Connecticut, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, Oklahoma, Pennsylvania, Tennessee, Virginia””as well as the District of Columbia.

In a recent letter, twelve Freshman House Republicans urged House Leadership to extend the New Markets Tax Credit (NMTC) program. While these GOP Representatives note that they do not support extending all tax credits, they do contend that the NMTC is a critical source of financing for a wide variety of businesses and community facilities that provides much-needed support for vulnerable low-income communities during an especially difficult time.

Both the U.S. House of Representatives and Senate have passed S. 3245, which extends the EB”“5 Regional Center program for three years. EB-5 Regional Centers identify businesses and development opportunities that meet a community’s investment needs and allow foreign investors to channel funds to those opportunities.

The Community Development Financial Institution Fund (CDFI Fund) has announced that the agency will consider extending the NMTC application deadline (currently September 12, 2012 at 5:00 pm EST) to accommodate applicants that have been directly affected by Hurricane Isaac.

The Senate Finance Committee recently held a markup hearing to discuss the Family and Business Tax Cut Certainty Act of 2012 which includes more than $205 billion in tax cut extensions for families and businesses. The bill, which passed the Committee by a margin of 19 to 5, would extend the new markets tax credit (NMTC) program for two years, through 2013, permitting up to $3.5 billion in qualified equity investments for each of calendar years 2012 and 2013.

The Mississippi State Legislature recently passed HB 1257 to amend Section 57-105-1 of the Mississippi Code of 1972 in order to allow certain public entities to participate in New Markets Tax Credit financing as qualified low-income businesses.

NH&RA is pleased to offer the Power Point presentations, relevant articles, reports, memos, etc. from our recent 2012 Summer Institute and New Markets Tax Credit Symposium, which was held July 25-28, 2012 at the Harbor View Hotel on Martha’s Vineyard in Massachusetts.

The Community Development Financial Institutions (CDFI) Fund announced today that the 2012 New Markets Tax Credit (NMTC) allocation round has opened; this is the tenth award round of the program. The CDFI Fund will make up to $5 billion in tax credits available, pending Congressional authorization.

Maine State Senate President Kevin Raye (R-Perry) and Senator Doug Thomas (R-Ripley) recently succeeded in passing an amendment to the state’s FY 2013 budget which increases the individual tax credit cap for the state’s New Markets Capital Investment Program (NMCIP) program from $10 million to $40 million.