$10 Billion in Allocation Authority Available
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released today the Notice of Allocation Availability (NOAA) for the next round of the New Markets Tax Credit Program (NMTC Program). A total of $10 billion in Allocation Authority is available through this combined round that will span calendar years (CYs) 2024 and 2025 of the NMTC Program. The CDFI Fund is posting the NOAA on its website in anticipation of its publication in the Federal Register on November 21, 2024.
The NMTC Program spurs investment of private sector capital into distressed communities by providing a tax credit to corporate or individual taxpayers who make Qualified Equity Investments (QEIs) in designated Community Development Entities (CDEs). The CDEs, in turn, invest the raised capital in businesses in low-income communities. The tax credit provided to the investor totals 39% of the investment in a CDE and is claimed over a seven-year credit allowance period.
Since the inception of the NMTC Program in 2000, the CDFI Fund has completed 20 allocation rounds and has made 1,667 awards totaling $81 billion in tax allocation authority. More information about the NMTC Program can be found on the program’s webpage, www.cdfifund.gov/nmtc.
Program Updates
The CDFI Fund would like to highlight the following updates to the CY 2024-2025 round documents:
- CY 2024-2025 NOAA:
- Applicants must meet all eligibility requirements in the CY 2024-2025 NOAA, including having been certified as a CDE as of the Federal Register publication date of the NOAA and updated QEI and Qualified Low-Income Community Investments (QLICIs) thresholds for prior Allocatees.
- CY 2024-2025 NMTC Program Application:
- Question 25 has been updated to include two new sub-questions for applicants to indicate (1) the extent their NMTC investments will serve areas of deep distress, U.S. territories, high migration rural counties, and NMTC Native Areas; and (2) its track record of serving such areas.
- Question 27 has been revised to include additional sub-questions related to the Applicant’s community accountability and involvement.
- Updates to various definitions in the NMTC Program Application Glossary, including the definition of Disadvantaged Businesses.
- Additional revisions were made to clarify instructions and streamline the information collected.
- CY 2024-2025 NMTC Program Application FAQs:
- Please review the CY 2024-2025 NMTC Program Application Frequently Asked Questions (FAQs) as the document includes new and revised guidance that is important in completing the application.
Important CY 2024-2025 Deadlines
- NMTC Application Registration in AMIS: December 5, 2024
- NMTC Allocation Application Submission in AMIS: January 29, 2025
- QEI Issuance and QLICI Requirements: April 17, 2025
- Report QEIs and certify QLICIs in AMIS byApril 24, 2025
Please refer to the NOAA for more details about these and other deadlines.
Application Materials
- NMTC Application materials and resources, including a link to the Application, are available at www.cdfifund.gov/nmtc under Step 2: Apply.
Learn About Applying to the NMTC Program
To provide more information about the NMTC Program and the Application process, the CDFI Fund has made available pre-recorded webinars: (1) “NMTC Program AMIS Application Demonstration” which provides an overview of the electronic application’s features and the submission process in AMIS; and (2) “NMTC Program Application Registration Demonstration” which provides instructions on how to complete the Application Registration in AMIS. The webinars can be accessed on the NMTC Program page, www.cdfifund.gov/nmtc under Step 2: Apply.
Application Webinar
In addition to the detailed information that is available through the NOAA, NMTC Allocation Application, NMTC Allocation Application FAQ, and pre-recorded webinars, the CDFI Fund will conduct a one-hour long webinar to present changes to NMTC Allocation Application and answer application questions on Tuesday, December 17, 2024, at 2:00 p.m. Eastern Time (ET).
In order to ensure the webinar is an effective and efficient use of time, the CDFI Fund is asking participants to submit questions that they would like the CDFI Fund to consider addressing in the webinar by no later Sunday, December 1, 2024 via a service request in AMIS. Please note that the CDFI Fund will not take live questions during the webinar.
This webinar requires the use of Zoom. Advance registration is not required to participate. You can access the webinar using the link provided below, at least five minutes prior to the beginning of the webinar. Requests for reasonable accommodations under section 504 of the Rehabilitation Act should be directed to Jay Santiago at (202) 653-0300 no later than 48 hours before the conference calls begin.
Date: Tuesday, December 17, 2024
Time: 2:00 p.m. to 3:00 p.m. ET
Access Details
Please click the following link to join the webinar: https://www.zoomgov.com/j/1619431849
Webinar ID: 161 943 1849
Or by telephone, please dial a number based on your current location:
+1 669 254 5252 US (San Jose)
+1 646 964 1167 US (US Spanish Line)
+1 646 828 7666 US (New York)
+1 669 216 1590 US (San Jose)
+1 415 449 4000 US (US Spanish Line)
+1 551 285 1373 US (New Jersey)
International numbers available: https://www.zoomgov.com/u/aey9CvFGrR
Questions
For more information on the NMTC Application or certification as a CDE, please contact the CDFI Fund’s Help Desk by submitting a service request in AMIS.
Learn more about the CDFI Fund and its programs at www.cdfifund.gov.