The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released the Notice of Allocation Availability (NOAA) for the calendar year (CY) 2015 round of the New Markets Tax Credit Program (NMTC Program). The NOAA makes up to $5 billion in tax credit allocation authority available for the CY 2015 round, pending Congressional authorization.
According to Novogradac, the 2015 application intends to make it easier for military base realignment and closure (BRAC) sites to qualify for an allocation of credits.
Deadlines
- CDE Certification Application: November 6, 2015
- NMTC Electronic Application submission: December 16, 2015
- Prior Allocatees’ Issuance of Qualified Equity Investments: January 29, 2016
Application Materials
- NMTC application materials and resources are available at www.cdfifund.gov/nmtc under How to Apply Step 2: Apply.
- CDE Certification application materials and resources are available at www.cdfifund.gov/cde under How to Apply Step 1: Apply.
NMTC Application Conference Calls (dial-in: 1-888-469-1239; passcode: 5561021)
- Tuesday, October 27, 2015, 2:00 p.m. EDT
- Thursday, October 29, 2015, 3:30 p.m. EDT
The New Markets Tax Credit spurs investment of private sector capital into distressed communities by providing a tax credit to corporate or individual taxpayers who make qualified equity investments in designated Community Development Entities (CDEs). The CDEs, in turn, invest the capital raised into projects and businesses in low-income communities. The credit provided to the investor totals 39 percent of the investment in a CDE and is claimed over a seven-year credit allowance period.
The CDFI Fund has made 912 awards—totaling $43.5 billion in tax credit allocation authority—to CDEs through the NMTC Program since the program’s inception. More information about the NMTC Program can be found on the program’s website or in the program’s fact sheet.
