Current News
Final Targeted Populations Regulations
IRS issued final regulations providing rules for satisfaction of the QALICB requirements for businesses serving low-income targeted populations. The final regulations were issued pursuant to the American Jobs Creation Act of 2004 which expanded the definition of low-income communities to include individuals or groups of individuals who are low-income persons or lack adequate access to loans or equity investments. The final regulations are effective for tax years ending on or after December 5, 2011 and taxpayers can apply the regulations to prior tax years for targeted populations designated as low-income communities after October 22, 2004.
Updated CDFI Fund Compliance and Monitoring Guidance
September 2011, the Community Development Financial Institutions Fund (CDFI Fund) issued updated responses to frequently asked questions regarding NMTC compliance and monitoring matters, replacing the May 2009 edition. CDFI Fund reserves the right to modify the guidance at any time upon public notice. Additional guidance was provided clarifying, for example, the requirements relating to the allocatee's affordable housing commitment and the substantial rehabilitation threshold applicable to loans or investments made to businesses whose principal business activity is rental real estate.
CDFI Fund Request for Public Comment
On November 7, the CDFI Fund issued a request for public comment with respect to the NMTC program in order to increase the effectiveness of the program including comments on census tract eligibility, commitments to areas of higher distress, types of qualifying businesses, community accountability, transaction costs, evaluation of financial products, and combining NMTCs with other federal subsidies. Comments are required to be submitted in writing by February 6, 2012.
2011 NMTC Allocations
The CDFI Fund has indicated informally that it anticipates that the NMTC allocation awards for the 2011 (9th) round will be made in February 2012. 314 applications were submitted requesting $26.6 billion in NMTC allocation authority.
