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September 25, 2012
Washington, DC - The U.S. Department of the Treasury’s Community Development
Financial Institutions Fund (CDFI Fund) announced today that it received a total
of 282 applications under the 2012 round of the New Markets Tax Credit Program (NMTC
Program). The NMTC Program encourages economic development in low-income and distressed
communities by making tax credits available to Community Development Entities (CDEs)
for targeted investments in eligible areas.
The CDEs that applied under the 2012 round are headquartered in 44 states, the District
of Columbia, and Puerto Rico. The applicants requested an aggregate total of $21,901,474,907
in NMTC allocation authority.
“The steady demand for New Markets Tax Credit allocation authority illustrates how
effective this program is in encouraging economic and community development in low-income
communities across America,” said CDFI Fund Director Donna J. Gambrell. “The 2012
round is the tenth award round of the program, and our strong application numbers
illustrate how we’ve established the New Markets Tax Credit as an essential tool
for generating impact through investments.”
The NMTC Program was established by Congress in December of 2000 and permits individual
and corporate taxpayers to receive a credit against federal income taxes for making
qualified equity investments in CDEs. The credit provided to the investor totals
39 percent of the cost of the investment and is claimed over a seven-year period.
Substantially all of the taxpayer's investment must in turn be used by the CDE to
make qualified investments in low-income communities. Successful applicants are
selected only after a competitive application and rigorous review process that is
administered by the CDFI Fund.
The application deadline was September 12, 2012, although applicants affected by
Hurricane Isaac were given a limited extension on a case-by-case basis. The CDFI
Fund anticipates announcing the organizations that will receive New Markets Tax
Credit allocations in early 2013, subject to Congressional reauthorization.
Through the first nine rounds of the NMTC Program, the CDFI Fund has made 664 awards
totaling $33 billion in tax credit allocation authority. The NMTC Program’s innovative
approach to using tax credits to promote economic development in low-income communities
led to its recognition earlier today as a
“Bright Idea in Government”
by Harvard
University’s Ash Center for Democratic Governance and Innovation at the John F.
Kennedy School of Government. Additional information about the NMTC Program can
be found on the CDFI Fund’s web site at www.cdfifund.gov/nmtc.
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