Mary Scott Balys
The CDFI Fund has released the Notice of Allocation Availability (NOAA) for the 2019 Calendar Year (CY) round of the New Markets Tax Credit (NMTC) Program. Up to $3.5 billion in tax credit allocation authority is available in the 2019 round. The NOAA will be published in the Federal Register on September 6 and is currently available on the CDFI Fund website.
The NOAA details several important deadlines for the 2019 round, including:
- Community Development Entity (CDE) Certification Application: September 23, 2019
- NMTC Electronic Application Submission: October 28, 2019
- Qualified Equity Investment (QEI) Issuance and Qualified Low Income Community Investment (QLICI) Requirements Deadline: January 31, 2020
Learn more about the NMTC application process.
Without Congressional action, the NMTC’s authorization will expire on December 31, 2019, putting further allocations in jeopardy. The NMTC has proven to be a valuable community development tool, spurring over $90 billion in total financing since inception and creating over one million jobs.
OFN supports the bipartisan New Markets Tax Credit Extension Act of 2019 introduced by Senator Roy Blunt (R-MO), Senator Ben Cardin (D-MD), along with Representative Terri Sewell (D-AL) and Representative Tom Reed (R-NY). This legislation would make the NMTC permanent, increase the allocation to $5 billion per year, and index it to inflation in future years. The bill would also provide NMTC investors with relief from the Alternative Minimum Tax.