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 proposed regulations allow a CDE that makes a qualified low-income community investment in a non-real estate business to invest certain returns of capital from those investments in unrelated certified community development financial institutions that are CDEs. The final rule also defines non-real estate qualified active low-income community business (QALICB), establishes investing guidelines, and would affect taxpayers claiming the NMTC. The rule will become effective upon its publication in the Federal Register.
Click here to read RIN 1545-BK04.
