Changes to the 2018 NMTC Application

Changes to the 2018 NMTC Application

Application, Blog, Latest News
On Wednesday, the CDFI Fund opened the Calendar Year 2018 Round New Markets Tax Credit application. There are some significant differences between the 2017 and 2018 application. The Coalition compared the text of two applications and created a red-lined Word Document for your reference. If you are a member of the Coalition, you should have received it in a Policy Bulletin yesterday. If not, shoot us an email and we'll get it to you. Below are some of the most significant changes in the application organized by section. Executive Summary/Intro/Assurances: Assurances and Certifications: The applicant has 1,000 characters to explain why they checked a "false" box on any of the assurances and certifications. Part I: Business Strategy Projected Business Activities: Much of the project pipeline narrative moves into Table A5.…
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The NMTC, Business Financing, and Entrepreneurship

The NMTC, Business Financing, and Entrepreneurship

Blog, Case Studies, Featured, Latest News, NMTC Success Stories
By Paul Anderson Today, the White House released its annual Economic Report of the President. The report included a sidebar on "Distressed Communities and the Tax Cuts and Jobs Act that mentions the New Markets Tax Credit (see right) and then later goes on to describe the Invest in Opportunity Act (IOA). While the IOA and New Markets Tax Credit (NMTC) target many of the same census tracts, no question that the NMTC and the IOA serve different but complementary purposes. Opportunity Funds will make equity investments in businesses. Community Development Entities mostly use the NMTC to provide debt to businesses and community facilities. That's why we are so excited see these programs working side by side.  We appreciate the White House highlighting the NMTC's success, but I do feel the…
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Treasury’s CDFI Fund Announces 2017 NMTC Awards

Treasury’s CDFI Fund Announces 2017 NMTC Awards

Blog, Latest News
WASHINGTON, D.C. – The U.S. Department of the Treasury’s CDFI Fund announced the Calendar Year 2017 New Markets Tax Credit (NMTC) allocation awards today. The CDFI Fund awarded $3.5 billion to 73 Community Development Entities (CDEs) from around the country. “The federal New Markets Tax Credit is a unique and flexible community development tool with a successful track record, attracting investment capital and boosting economic activity in low-income areas,” said Bob Rapoza, spokesman for the NMTC Coalition. “In fact, the NMTC has leveraged an unprecedented level of investment to low-income communities—generating about $82 billion in total capital investment through public-private partnerships that created more than one million jobs.” The CDFI Fund indicated 230 CDEs applied for allocations for a total demand of nearly $16.2 billion in credits. Only 73 applications…
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NMTC Preserved, Thank You to Congressional Supporters

NMTC Preserved, Thank You to Congressional Supporters

Blog, Latest News
Instead of repealing the New Markets Tax Credit (NMTC), as was proposed by the House version of the Tax Cuts and Jobs Act, Republican conferees agreed late last week to preserve the NMTC's existing authorization through 2019. Thank you to the following House and Senate Republicans who went on the record in support of the NMTC during the tax reform debate, either by cosponsoring the New Markets Tax Credit Extension Act of 2017 (H.R. 1098/S. 384) or signing a letter by Rep. Lloyd Smucker in support of preserving the NMTC. House Republicans Rep. Don Young (R-AK-01) Rep. Bradley Byrne (R-AL-01) Rep. David Valadao (R-CA-21) Rep. Ted Yoho (R-FL-03) Rep. Bill Posey (R-FL-08) Rep. Gus Bilirakis (R-FL-12) Rep. Dennis Ross (R-FL-15) Rep. Vern Buchanan  (R-FL-16) Rep. Tom Rooney (R-FL-17) Rep. Mario…
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Twenty-Seven House Republicans Send NMTC/HTC Support Letter to Brady and Ryan

Blog, Case Studies, Latest News
Late last week, Congressman Smucker (R-PA) took the lead on a letter urging Speaker Paul Ryan and Chairman Kevin Brady to preserve the Historic Tax Credit (HTC) and make the New Markets Tax Credit (NMTC) permanent. The letter was open to House Republicans and 26 of his colleagues signed on. Here is the full list: Don Young (R-AK) Bradley Byrne (R-AL) Ted Yoho (R-FL) Adam Kinzinger (R-IL) Susan Brooks (R-IN) Ralph Abraham (R-LA) Bruce Poliquin (R-ME) Fred Upton (R-MI) Ann Wagner (R-MO) John Fason (R-NY) Steve Chabot (R-OH) Bob Gibbs (R-OH) Bill Johnson (R-OH) David Joyce (R-OH) Steve Stivers (R-OH) Michael Turner (R-OH) Brad Wenstrup (R-OH) Lou Barletta (R-PA) Ryan Costello (R-PA) Brian Fitzpatrick (R-PA) Lloyd Smucker (R-PA) Glenn Thompson (R-PA) Louie Gohmert (R-TX) Barbara Comstock (R-VA) Mike Gallagher (R-WI)…
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Congressman Smucker (R-PA) Circulates NMTC/HTC Support Letter to Speaker Ryan and Chairman Brady

Congressman Smucker (R-PA) Circulates NMTC/HTC Support Letter to Speaker Ryan and Chairman Brady

Blog, Latest News
URGENT: Contact House Republicans and Urge Them to Sign the Smucker Letter Congressman Smucker (R-PA) is requesting signatures for a letter urging Speaker Paul Ryan and Chairman Kevin Brady to preserve the Historic Tax Credit (HTC) and make the New Markets Tax Credit (NMTC) permanent. The letter is open to House Republicans and it closes Wednesday, November 29th, so please reach out to Republican offices as soon as possible and and ask them to sign on to Congressman Smucker's letter. Thus far, the letter has been signed by Reps. Glenn Thompson (R-PA), Bob Gibbs (R-OH), Barbara Comstock (R-VA), and Lou Barletta (R-PA). We are suggesting that you target House Republicans who cosponsored of H.R. 1098. Representatives who want to sign on to the letter can contact Andrew Robreno with Congressman…
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CDFI Fund Releases Updated NMTC Eligibility Data

Blog, Income, Latest News, Poverty
Today, the CDFI Fund released updated census tract eligibility data for the NMTC program. The eligibility update utilizes data from the 2011-2015 American Community Survey (ACS). Detailed guidance will be posted soon on the CDFI Fund website. CDFI Fund News Release Eligibility Changes: There are about 73,000 census tracts nationwide, of which 31,640 are eligible based on poverty, income, or high out-migration. The eligibility changes remove a total of 4,517 previously eligible census tracts, but add 6,050 newly eligible census tracts, for a net gain of 1,533 eligible tracts. The graphic below shows eligibility changes:   [caption id="attachment_9620" align="aligncenter" width="1200"] Click image to enlarge[/caption] We will have an interactive map soon, but in the meantime, here are a couple of cities: [caption id="attachment_9622" align="aligncenter" width="1077"] New Orleans[/caption] [caption id="attachment_9621" align="aligncenter"…
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Helping Meet Housing Needs After Katrina

Helping Meet Housing Needs After Katrina

Blog, Case Studies, Disaster Assistance, Disaster Relief, Featured, Go-Zone
After Katrina and Rita, the New Markets Tax Credit (NMTC) served an important role in rebuilding community facilities including hospitals and schools, helping businesses replace damaged furniture and equipment, and bringing life back to devastated areas. Disasters isolate low-income areas that already lag far behind affluent communities in the availability of basic services like healthcare as well as the physical infrastructure needed to grow businesses and create economic opportunity. The construction of facilities and infrastructure is important, but economic recovery is difficult - if not impossible - if residents have no where to live. Katrina and Rita collectively displaced 1.3 million people and caused severe or major damage to tens of thousands of owner-occupied homes in areas struggling with high poverty and unemployment before the storm. The NMTC played an…
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