New Markets Tax Credit (NMTC)

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.

Alaska’s Governor Sean Parnell recently signed new legislation (SB 66) into law that will create a new markets tax credit (NMTC) loan guarantee and leveraged loan assistance program within the Alaska Industrial Development and Export Authority (AIDEA).

The CDFI Fund is soliciting comments from the public concerning the New Markets Tax Credit Allocation Tracking System.

The Community Development Financial Institutions Fund (CDFI Fund) has issued request for comments concerning the revised reporting and record retention requirements for the Capital Magnet Fund.

NH&RA member firm, Novogradac & Company, recently released a mapping tool that shows the total number and locations of New Markets Tax Credits (NMTC) qualified low-income community investments (QLICIs) in each U.S. state and territory.

A new report conducted by the New Markets Tax Credit Coalition finds that the New Markets Tax Credit (NMTC) has spurred private investment in economically distressed communities to finance a wide range of businesses, create jobs, and jump start local economies.

On May 9, Alabama’s state legislature sent the proposed Alabama New Markets Development Act (HB257) to Governor Wallace’s office for approval. The bill is informed by the Federal New Markets Tax Credit and much of the language and general structure mirrors key concepts and precedent in Section 45D of the IRS Code of 1986; however, there are several notable differences.

Representative Ed Towns (D-NY) recently introduced legislation (HR 5718) in the U.S. House of Representatives to amend Section 45D of the Internal Revenue Code of 1986 to revise the New Markets Tax Credit (NMTC) Program and the rules related to population census tracts with low-income populations.

The Community Development Financial Institutions Fund (CDFI Fund) recently released a study conducted by the Government Accountability Office (GAO) that found that the CDFI and New Markets Tax Credit (NMTC) Programs were meeting goals set for proportionally awarding organizations that serve rural areas.

The House Ways and Means Select Revenue Subcommittee recently held a hearing on tax extenders in which a few members specifically expressed support for the New Markets Tax Credit (NMTC) and Wind Production Tax Credit programs.

The CDFI Fund recently released updated program eligibility for the New Markets Tax Credit (NMTC) Program, based on the 2006-2010 American Community Survey (ACS).