New Markets Tax Credit (NMTC)

ICAST’s IRA & BIL Instant Benefit Estimate Calculator is now available on NH&RA’s website under the Resources section.

The Community Development Financial Institutions (CDFI) Fund is soliciting public comments on its calendar year (CY) 2021 New Markets Tax Credit (NMTC) Programs Allocation Application.

Representatives Terri Sewell (D-AL) and Tom Reed (R-NY) introduced legislation to increase the NMTC allocation by $3.5 billion over four years, allow investors to carry back those credits for five years, exempt the NMTC from the 75 percent general business credit limitation, among other provisions.

Enterprise Community Partners Inc. announced Dec. 14 it will take part in a $3.5 billion, five-year initiative to counter racial inequities in housing. Enterprise said it will contribute $10 million in capital to seed a $350 million growth fund to attract an additional $3.1 billion for the Equitable Path Forward initiative.

The Senate returned this week and hit the ground running with Fiscal Year (FY) 2021 appropriations. Funding for the federal government runs out on December 11 and both Republicans and Democrats have stated their desire for full FY 2021 appropriation, as opposed to another short-term or long-term continuing resolution. A COVID-19 relief package and a tax bill are widely seen as the other must-dos during the lame-duck session. All three legislative vehicles provide opportunities to attach LIHTC priorities. We’ll continue to monitor the latest developments and engage our members when action is needed.

The Community Development Financial Institutions Fund (CDFI Fund) posted an updated calendar year (CY) 2020 New Markets Tax Credit (NMTC) Program Allocation Application Frequently Asked Questions (FAQs) document and a revised CY 2020 NMTC Program Allocation Application.

The calendar year (CY) 2020 New Markets Tax Credit (NMTC) notice of allocation availability (NOAA) references a new requirement for applicants to complete and save their NMTC application registration within the Awards Management Information System (AMIS) by October 9 at 5 p.m. ET.

The Community Development Financial Institutions (CDFI) Fund published a notice of allocation availability (NOAA), making $5 billion in New Markets Tax Credit (NMTC) allocation authority available for the 2020 NMTC allocation round. Applications are due November 16.

The Internal Revenue Service (IRS) issued final regulations providing additional guidance on the base erosion and anti-abuse tax (BEAT). The final regulations provide detailed guidance regarding how to compute certain BEAT calculations for groups of related taxpayers.

The Vermont Housing Finance Agency (VHFA) Board of Commissioners recently awarded state housing tax credits for five affordable homeownership development projects. Homes receiving tax credits will retain their affordability for future buyers should the owners sell the home in the future.

Congratulations to the NH&RA members that received a New Markets Tax Credit award National Trust Community Investment Corporation, PNC Community Partners, Inc., RBC Community Development, LLC, The Rose Urban Green Fund and USBCDE, LLC.

The New Markets Tax Credit (NMTC) Coalition has published its latest annual progress report for the NMTC Program.   The 2019 survey findings show that program participants – from investors to community development organizations to the CDFI Fund – continue to improve and refine the program’s efficiency and impact in low-income communities.

The House Democrats’ recently released infrastructure bill, Moving Forward Act (H.R. 2), includes a myriad of housing provisions. A vote on the legislation is expected before the Fourth of July recess. While the bill is likely to pass the Democrat-led House, it will face greater resistance in the GOP-led Senate. The bill does not include any pay-fors and Republicans are already panning the bill as dead-on-arrival. However, the bill may set an important marker for future infrastructure negotiations. The Trump administration is reportedly drafting a $1 trillion infrastructure package aimed at spurring the economy.