Today the CDFI Fund announced the opening of the next round (2014) of New Markets Tax Credit allocations. Subject to Congressional authorization, the CDFI Fund intends to award $5 billion of New Markets Tax Credit allocation in the next round. Pursuant to the announcement today by the CDFI Fund, CDE applications must be submitted by August 22, 2014, applications for New Markets Tax Credit allocation must be submitted by October 1, 2014, and prior allocates must satisfy their required issuance of qualified equity investments by January 30, 2015.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund today announced $3.5 billion in New Markets Tax Credit awards aimed at revitalizing low-income communities and increasing economic opportunity nationwide. A total of 87 organizations across the country received tax credit allocation authority under the calendar year 2013 round of the New Markets Tax Credit Program. This round awarded today represents the last round of New Markets Tax Credit authority currently authorized by Congress.
On July 29, 2013, the CDFI Fund published the Notice of Allocation Authority (“NOAA”) for the calendar years 2013 and 2014 Allocation Round of the Federal New Markets Tax Credit (“NMTC”) Program. The NOAA announced the availability of up to $8.5 billion of NMTC allocation authority for calendar years 2013 and 2014, $3.5 billion of which was authorized by the American Taxpayer Relief Act of 2012 and an additional $5 billion which was subject to Congressional authorization. The CDFI Fund has not received Congressional allocation authority for calendar year 2014. As a result, the CDFI Fund has amended the NOAA to award the authorized allocation authority for only calendar year 2013 in the amount of $3.5 billion. The CDFI Fund announced that it anticipates making awards under the calendar year 2013 round in late spring of 2014.
Last week the “Invest in the United States Act of 2014” was introduced into the House of Representatives as H.R. 3939. If enacted, this Act would be permanently extend the Federal New Markets Tax Credit Program. The Act would also establish an annual allocation of Federal New Markets Tax Credit authority of $5 billion, indexed for inflation. The Invest in United States Act of 2014 has been referred to the House Commitee on Ways and Means, Transportation and Infrastructure, and Education and the Workforce.
In response to the decline in manufacturing jobs in certain parts of the Country, the Manufacturing Communities Investment Act was introduced to the Senate. This Bill which would extend the Federal new markets tax credit (NMTC) Program through 2016 with an increase in the annual NMTC allocation from $3.5 billion to $5 billion in calendar years 2014, 2015 and 2016. In addition the Bill would authorize an additional $1 billion in NMTC allocation for 2014, 2015, and 2016 which would be allocated by the CDFI Fund to CDEs whose mission is investments in communities affected by major manufacturing job losses. The Bill has been referred to the Senate Finance Committee.
Duane Morris represented Lancaster Pennsylvania based CDFI Community First Fund in the deployment of its first award of Federal New Markets Tax Credit authority by the CDFI Fund. Community First Fund deployed New Markets Tax Credit allocation for the expansion of a Charter School in York, Pennsylvania. PNC Bank provided the debt and tax credit equity for the York Charter School expansion.
The Community Development Financial Institutions Fund (CDFI Fund) launched the next version of its CDFI Information Mapping System (CIMS3). The web-based tool allows organizations interested in applying for certification as a Community Development Financial Institution (CDFI) or Community Development Entity (CDE), or in applying to one of the CDFI Fund’s award programs, to visually plot their eligible service areas and investments. CIMS3 is intended to improve the past mapping capabilities the CDFI Fund offered.It also for the first time allows the general public to access eligibility data for each of the CDFI Fund’s programs. CIMS3 will also allow prospective and certified CDFIs and CDEs enhanced capacities to identify and assess target markets, to quickly and accurately determine the eligibility of specific sites for possible investments, and to easily create maps and geographic data analyses.
Duane Morris partner and Affordable Housing and Community Development Chair Art Momjian will speak at a New Markets Tax Credit Forum for Community Leaders, Developers, Commercial Lenders and Community Development Professionals on December 10th. The Forum is sponsored by Community First Fund, the Leigh Valley Economic Development Corporation and The Reinvestment Fund and will be held at the ArtsQuest Center in Bethlehem, Pennsylvania. Art Momjian will discuss the legal aspects of Federal New Markets Tax Credit transactions.
Duane Morris partner and Affordable Housing and Community Development Practice chair Art Momjian will be speak at a New Markets Tax Credit Conference sponsored by the Community First Fund. The Conference will be held Thursday November 14th in the Offices of Community First Fund located at 30 West Orange Street, Lancaster, Pennsylvania. The conference will start at 8:00 am and Art Momjian will discuss Legal Perspectives of the New Markets Tax Credit Program. For further information regarding the Community First Fund New Markets Tax Credit Conference contact Art Momjian at firstname.lastname@example.org.
The New Jersey Economic Opportunity Act of 2013 (the “Act”) was signed into law on September 18, 2013. The Act is intended to promote job creation and the redevelopment of urban centers, suburban office parks and areas impacted by Hurricane Sandy by expanding state programs that offer tax incentives. The Act phases out three existing programs and expands two existing programs: the Grow New Jersey Assistance (“Grow NJ”) Program and the Economic Redevelopment and Growth (“ERG”) Program. The Grow NJ Program provides incentives and tax credits for businesses that invest and create jobs in New Jersey. Under the Act the Grow NJ Program provides bonus tax credits for mega projects and projects located in Urban Transit Hubs and the Garden State Growth Zone, and lowers minimum capital investments and job creation requirements for 8 counties including Camden and Atlantic counties. Continue reading “New Jersey Enacts Economic Opportunity Act of 2013”