Current News

On June 1, 2006, the Community Development Financial Institutions Fund (“CDFI Fund”) announced the 63 organizations awarded tax credits for $4.1 billion in investments under the New Markets Tax Credit program, including $600 million for specific investment in the redevelopment of the Hurricane Katrina Gulf Opportunity Zone. The awards range from $2 million to $143 million. As reported by the CDFI Fund, most of the recipients committed to provide investments in areas of greater economic distress and to provide either equity or debt that is at least 25% below market and/or is characterized by multiple concessionary features. Most of the recipients committed to invest at least 95% of qualified equity investments received in qualified low-income community investments.

For the 2007 allocation round, the CDFI Fund is authorized to issue up to $3.9 billion in New Markets Tax Credit investment authority, including $400 million dedicated to the Gulf Opportunity Zone.

On June 30, 2006, the CDFI Fund and the Internal Revenue Service issued Notice 2006-60 providing guidance regarding the designation of certain targeted populations under the New Markets Tax Credit program, including a special designation in the Gulf Opportunity Zone as “low-income communities.” Taxpayers may rely on this notice until regulations are issued. The Notice provides guidance as to the applicable requirements for a qualified active low-income community business when its activities involve such targeted populations.