Next Application Round for NMTC Program to Open in Late July

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The next application round for the federal new markets tax credit program will open in late July and close two months later, according to U.S. Department of Treasury official Don Graves.

Graves, Deputy Assistant for Small Business, Community Development and Housing Policy, noted the timing for the 2013 NMTC allocation application round in a speech June 6 at a Washington, D.C. conference on new markets tax credits sponsored by Novogradac & Company LLP. He also talked about other developments in the NMTC program.

A maximum of $3.65 billion in allocation authority will be available in the forthcoming funding round, which will be the last funding round for the program unless Congress approves legislation to reauthorize the new markets tax credit beyond 2013.

In his remarks, Graves stressed the Obama Administration’s strong support for the NMTC program and cited its accomplishment in funding projects that have revitalized low-income communities nationwide while providing numerous jobs and economic benefits. The Administration’s FY 2014 budget proposal calls for making the program permanent, increasing the annual amount of allocation authority to $5 billion, and allowing new market tax credits to offset federal alternative minimum tax liability.

Graves reported that an internal working group made up of representatives from Treasury, the IRS, and the Community Development Financial Institutions Funds are still reviewing comments submitted in response to a notice asking for suggestions for ways to improve the NMTC program.

“We are looking at a range of [non-legislative] changes” to the program, said Graves, inviting additional suggestions (to don.graves@treasury.gov). “I can’t announce any changes today, but we may have some additional changes in the near future.”