Jan
07

New Markets Tax Credit Program Extended for Two Years

By

On January 2, 2013, President Barack Obama signed the American Taxpayer Relief Act of 2012 (H.R. 8) into law which, in addition to addressing other “fiscal cliff” issues, extends the New Markets Tax Credit (“NMTC”) Program for two years. The Act provides for an annual maximum limit on allowable qualified equity investment of $3.5 billion for each year, mirroring the limits in 2010 and 2011.

This much anticipated, widely endorsed extension of the NMTC Program will continue to support and incentivize investment in qualified low-income community businesses. The legislation effectively permits $7 billion of new investments to generate NMTCs. Industry experts anticipate that the Community Development Financial Institutions (“CDFI”) Fund will announce the community development entities (“CDEs”) selected to receive $3.5 billion in NMTC allocations under the tenth round of the NMTC Program in February, consistent with the timing of the announcement for the prior round. (An additional $3.5 billion of awards will be announced in 2014).

 

Be Sociable, Share!
    Categories : National News

    Comments are closed.