Treasury opens 2014 round of New Markets Tax Credit program  

August 6: The Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) has released its Notice of Allocation Availability (NOAA) for the calendar year (CY) 2014 round of the New Markets Tax Credit (NMTC) program.

The 41-page NOAA [PDF 191 KB] authorizes up to $5 billion in tax credit allocation authority available for the CY 2014 round, pending congressional authorization to extend the credit (which expired on December 31, 2013).

Important deadlines

  • Community development entity (CDE) certification application—August 22, 2014
  • NMTC electronic application—October 1, 2014

Background

This new round of NMTC allocations allows qualified community development entities (CDEs) to apply for NMTC allocations.


A CDE uses the NMTC allocation to attract investors to make qualified equity investments (QEIs) in the CDE in exchange for interests in the CDE and to claim the NMTC with respect to the interests. The CDE, in turn, uses the investors’ cash to invest in businesses located in economically distressed areas.


The tax credit to the investor is equal to 39% of the cost of the QEI and is claimed over a seven-year period.


For more information, contact a tax professional with KPMG’s Washington National Tax TCEAS (Tax Credit and Energy Advisory Services) Group:


Susan Reaman

(202) 533 3541


Rich Blumenreich

(202) 533 3032


Brett Goldsberry

(801) 237 1304




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