$5 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 calendar year (CY) 2022 round of the New Markets Tax Credit Program (NMTC Program). The CDFI Fund is posting the NOAA on its website in anticipation of its publication in the Federal Register on November 22, 2022.
Pursuant to the Taxpayer Certainty and Disaster Tax Relief Act of 2021, included in the Consolidated Appropriations Act of 2021 (Public Law 116-260), the NOAA makes up to $5.0 billion in tax credit allocation authority available for the CY 2022 round.
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 18 allocation rounds and has made 1,461 awards totaling $71 billion in tax allocation authority. More information about the NMTC Program can be found on the program’s webpage, www.cdfifund.gov/nmtc, or in the program’s fact sheet.
The CDFI Fund made minor revisions to the following CY 2022 round documents:
- Revised QEI Issuance Requirements: Prior-year NMTC Allocatees will be subject to revised minimum thresholds for QEI issuance and closing of Qualified Low-Income Community Investment (QLICIs) with respect to their prior-year NMTC Allocations.
- CY 2022 NMTC Program Application FAQs updates: Please review the CY 2022 NMTC Program Application FAQs as several questions have been revised.
Important CY 2022 Deadlines
- CDE Certification Application Submission Deadline: December 2, 2022
- NMTC Application Registration in AMIS: December 15, 2022
- NMTC Allocation Application Submission in AMIS: January 26, 2022
- QEI Issuance and QLICI Requirements: May 4, 2023
Please refer to the NOAA for more details about these and other deadlines.
- NMTC Application materials and resources, including a link to the Application, are available at www.cdfifund.gov/nmtc under Step 2: Apply.
- CDE Certification application materials and resources are available at www.cdfifund.gov/cde under Step 1: 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 Q&A
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 answer application questions on Thursday, December 1, 2022 at 3:00 p.m. Eastern Time.
In order to ensure the webinar is an effective and efficient use of time, the CDFI Fund is asking participants to submit questions by Tuesday, November 29, 2022 via a service request in AMIS.
Viewing this webinar requires the use of WebEx. To download the WebEx Desktop Application, please see the instructions on the WebEx Downloads page. No prior registration is necessary. 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.
- Webinar Access: https://www.mymeetings.com/nc/join/
- Conference Number: PWXW2958651
- Audience Passcode: 1226186
- Dial by your location: (888) 790-1783
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.