The Community Development Financial Institutions Fund (CDFI Fund) recently released the Notice of Allocation Availability (NOAA), which officially opens the 2013 round of competition under the New Markets Tax Credit Program (NMTC Program). The NOAA combines the calendar year (CY) 2013 and 2014 rounds, making $8.5 billion ($3.5 billion authorized by Congress for CY 2013 and $5 billion requested in the President’s 2014 Budget) in tax credit authority available, pending Congressional authorization. The CDFI Fund has combined the CY 2013 and CY 2014 rounds in order to achieve cost and efficiency savings to the government in addition to realigning the program calendar. The combined round would also prevent an anticipated deficit of available NMTCs and would allow the CDFI Fund to make additional allocation awards.
Allocation applications for the 2013-2014 NOAA are due September 18, 2013 and applicants that are not yet certified as Community Development Entities (CDEs) must submit an application for certification as a CDE on or before August 9, 2013. The CDFI Fund will conduct two one-hour conference calls to answer applicant questions on July 30 and August 1.
Reminder about Key Deadlines
Per the 2013/2014 Notice of Allocation Availability, the deadlines for the NMTC Program are as follows:
- CDE Certification Applications: must be postmarked on or before August 9, 2013
- Service Area Amendment Requests: August 9, 2013
- Online Submission of Allocation Application: September 18, 2013
- Online Submission of Allocation Application Attachments: September 20, 2013
- Submission of Subsidiary CDE Certification Applications (for QEI Issuance): October 1, 2013
- Date by which prior-year Allocatees must issue the requisite percentage of QEIs: December 31, 2013
UPDATE: CDFI Fund has provided supplemental guidance to potential 2013/2014 New Markets Tax Credit Program applicants by updating the 2013/2014 NMTC Program – Application Q&A document on its website. The supplemental guidance is the result of specific questions that the CDFI Fund received during the two application round conference calls hosted on July 30 and August 1, 2013. Topics covered by the revised guidance include community outcomes, raising capital from investors, and the applicant’s track record of financing activities, among others.