February 23, 2024

CDFI Fund: Public Comments Sought on NMTC Program Allocation Application

The U.S. Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Pub. L. No. 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the Community Development Financial Institutions Fund (CDFI Fund), U.S. Department of the Treasury, is soliciting comments concerning the New Markets Tax Credit Program (NMTC Program) Allocation Application. The request for comment was published today in the Federal Register.

The U.S. Department of the Treasury, through the CDFI Fund, Internal Revenue Service, and the Office of Tax Policy, administers the NMTC Program. To claim the New Markets Tax Credit, taxpayers make Qualified Equity Investments (QEIs) in Community Development Entities (CDEs) and substantially all the QEI proceeds must, in turn, be used by the CDE to provide investments in businesses and real estate developments in low-income communities and other purposes authorized under the statute.

The application under review is part of the award selection process for the allocation of tax credit authority to CDEs. The Allocation Application has five main sections: Business Strategy – Community Outcomes; Management Capacity; Capitalization Strategy; and Information Regarding Previous Awards – in addition to an Applicant Information section and various tables.

Please note that comments are being requested on changes to be made to the calendar year (CY) 2024 Allocation Application. Specifically, comments are invited on: (a) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of technology; (e) estimates of costs required to provide the requested information including capital or start-up costs, costs of operation, maintenance costs, and costs to purchase any additional services; and (f) whether any additional questions or factors should be considered as part of the NMTC Application and/or review process with regards to the Business Strategy section.

An NMTC Allocation Application Template is provided online (link below) to aid the public in providing comments requested by this Notice and presents the questions that will comprise the CY 2024 NMTC Allocation Application, including substantive revisions relative to the existing NMTC Allocation Application. These proposed substantive revisions relative to the existing NMTC Allocation Application are highlighted in yellow in the NMTC Allocation Application Template.

All comments must be received by April 23, 2024 and must be submitted in writing and sent to Christopher Allison, NMTC Program Manager, Community Development Financial Institutions Fund, by e-mail to nmtc@cdfi.treas.gov.

For more information about the NMTC Program, please visit www.cdfifund.gov/nmtc, or view our factsheet.

Related Documents 

This post was originally published here.