CDFI Fund Announces Opening of 2010 New Markets Tax Credit Round; Tax Credits Available for Investments to Help Low-Income Communities

April 7, 2010

Washington, DC - The U.S. Department of the Treasury announced today the opening of the 2010 round of competition for tax credits under the New Markets Tax Credit (NMTC) Program.

"In our efforts to ensure that economic recovery reaches the hardest-hit communities, the New Markets Tax Credit remains a critical tool and I am delighted to announce, subject to Congressional authorization, the $5 billion of tax credit authority available in the fiscal year 2010 round,” said CDFI Fund Director Donna J. Gambrell. “These credits will help finance small businesses, grocery stores, healthcare centers, charter schools and job-training sites and will help create, save or support local jobs where they are needed most.”

The New Markets Tax Credit (NMTC) spurs investment of private sector capital in distressed communities by providing a tax credit for taxpayers who make qualified equity investments in designated Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the investment in a CDE and is claimed over a seven-year credit allowance period.

To date, the organizations awarded tax credits have raised $15.8 billion in equity investments, stimulating economic growth, supporting job creation and fostering small business growth in distressed communities across America.

Deadlines

• CDE Certification Application: April 26, 2010
• NMTC Program Application: June 2, 2010
• Prior Allocatees’ Issuance of Qualified Equity Investments: July 21, 2010

Application Materials

NMTC application materials and resources are available on the CDFI Fund's website at: http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5.

CDE Certification application materials and resources are available on the CDFI Fund's website at: http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=10.

Those interested in learning more about the FY 2010 funding round of the NMTC Program will be able to view a webcast after May 5, 2010 by visiting: www.cdfifund.gov/how_to_apply/.

Questions

For more information on the NMTC application or certification as a CDE, please contact the CDFI Fund at cdfihelp@cdfi.treas.gov.

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[CDFI-2010-18]