The annual application period has opened for businesses and other organizations that want to invest in distressed communities with the help of federal tax credits.
This week, the Community Development Financial Institutions (CDFI) Fund is publishing its Notice of Allocation Availability (NOAA) for the calendar year 2018 round of the New Markets Tax Credit (NMTC) program. The NOAA pertains to a total of $3.5 billion in NMTC authority for this year’s round.
Important deadlines that the CDFI Fund has issued:
- CDE Certification Application: May 24
- NMTC Application: June 28
- Prior Allocatees’ Issuance of Minimum Qualified Equity Investments: September 24
The NOAA offers more specific details about these and other deadlines. Additional materials concerning the NOAA may be found on the CDFI Fund website.
The NMTC program, administered by the U.S. Department of the Treasury, was established by Congress in 2000 to incentivize increased investments in operating businesses and real estate projects located in low-income communities or serving targeted low-income populations. The NMTC program provides a tax credit against federal income tax obligations in exchange for the making of equity investments in specialized financial institutions called community development entities.