The Community Development Financial Institutions Fund (CDFI Fund) has provided an updated Frequently Asked Questions (FAQ) document for New Markets Tax Credit compliance on its website. This document supersedes the December 2015 publications of the FAQ document by adding, revising, or updating select questions from the earlier edition. The major updates includes:
- Revised guidance regarding restrictions on repaying or refinancing Qualified Equity Investor (QEI) providers; aligning the language between the FAQ, Allocation Agreement, and Notice of Allocation Availability; emphasizing the restriction is specific to providers of the QEI; disallowing reimbursement for certain prior operating cost; and limiting reimbursements to original cost of the asset.
- Updated instructions for dissolution and dis-enjoinment of Subsidiary-Allocatee after the tax credit period.
- New guidance for reporting noncompliance with an Allocation Agreement.
The updated FAQ document may found on the Compliance page of the CDFI Fund’s website. Questions may be directed to the Office of Certification, Compliance Monitoring and Evaluation at email@example.com.
For further information on the New Markets Tax Credit Program or the CDFI Fund, please visit the CDFI Fund’s website.