The New Markets Tax Credit (NMTC) program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return […]
Just after the start of the new year President Obama signed the “fiscal cliff” legislation, which included an extension of the New Markets Tax Credit (NMTC) Program for 2012 and 2013. The bill gives the CDFI Fund tax allocation authority of $3.5 billion in each year. Currently, the CDFI Fund is reviewing applications submitted during […]
The Internal Revenue Service (IRS) recently published final regulations for the New Markets Tax Credit (NMTC) rule to encourage investments in non-real estate businesses. Historically, non-real estate projects have been overlooked by NMTC investors for their tendency to be shorter term loans. These loans, often times for equipment or working capital, traditionally have a term […]