Current News
2009 NMTC Allocation Awards
October 30, 2009, the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of Treasury awarded $5 billion of new markets tax credit (NMTC) investment authority to 99 Community Development Entities to stimulate investment and job creation in low-income communities and to benefit targeted populations. The allocation includes $1.5 billion of NMTC authority awarded to 24 Community Development Entities authorized by the American Recovery and Reinvestment Act of 2009. A list of the award recipients is available at cdfifund.gov.
Targeted Populations
September 24, 2008, IRS issued proposed regulations relating to the NMTC that provide rules for determining how qualified active low-income community business (QALICB) requirements are satisfied for investments made to low-income targeted populations and GO Zone targeted populations. Written comments were due December 23, 2008. The public hearing was January 22, 2009. Final regulations are anticipated to be issued in 2010.
September 30, 2008, CDFI Fund issued guidance to CDEs that serve targeted populations and certain geographic areas. All certified CDEs may serve targeted populations within their approved service area.
NMTC Proposed Amendments to Treasury Regulations
Proposed regulations relating to NMTC issued August 11, 2008 modify and clarify the “operating income” safe harbor and “reasonable expectation” safe harbor and address the implications of Community Development Entity (CDE) tax terminations. The proposed regulations will be effective on the date final regulations are published.
