ALERT: CDFI Combines Allocations to Increase New Markets Tax Credit FundingPrint PDFShare
On April 18, 2016, the Community Development Financial Institutions Fund (CDFI), which oversees the new markets tax credit program (NMTC Program), announced that calendar years 2015 and 2016 have been combined to increase overall funding to $7 billion. This increase stems from the recent reauthorization and extension of the NMTC Program from 2015 through 2019. The reauthorization and extension allows the CDFI to allocate up to $3.5 billion of credit authorization each year to certified community development entities.
In order to create immediate opportunities, the CDFI determined that combining the calendar year 2015 and 2016 allocations into one allocation round would result in the greatest benefit to low-income communities. Despite this announcement, the CDFI will not reopen the combined allocation round for new applications. Allocations are expected to be announced at the end of calendar year 2016.
Briggs and Morgan, P.A. has assisted community development entities and qualifying businesses in securing and deploying these credits since the inception of the NMTC Program. We have advised clients in a wide array of industries and geographic locations including a vocational training facility for the homeless in Seattle, a waste to energy project in Maine, for-sale low-income housing in Puerto Rico and commercial retail development in Guam.