CDFI Fund Opens 12th NMTC Funding Round

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On August 5, the Community Development Financial Institutions (CDFI) Fund issued a notice of allocation availability (NOAA) to open the federal new markets tax credit program’s twelfth funding round.

The NOAA for the calendar year 2014 funding round, also published in the Federal Register on August 8, offers up to $5 billion in NMTC allocation authority to community development entities (CDEs).

The CDFI Fund also released application materials, materials for becoming certified as a CDE, and “FAQ” documents.

CDEs must submit electronic applications requesting a NMTC allocation by no later than October 1, 2014.

The NOAA generally limits NMTC awards in the new round to a maximum of $125 million.

Before the CDFI Fund can award NMTC allocation authority under the current funding round, Congress must enact legislation to reauthorize the program and provide additional funding. Authorization for the program lapsed at year-end 2013.

The CDFI Fund typically announces NMTC allocation awards in the late spring or early summer.

Under the NMTC program, CDEs apply for competitive awards of NMTC allocation authority and provide the tax credits to investors in exchange for capital that is invested in eligible businesses and projects located in low-income communities.