July 24, 2013
In anticipation of its publication in the Federal Register
on July 29, 2013, the U.S. Department of the Treasury's Community Development Financial
Institutions Fund (CDFI Fund) released today the Notice of Allocation Availability
(NOAA), which officially opens the next round of competition under the New Markets
Tax Credit Program (NMTC Program). The NOAA combines the calendar year (CY) 2013
and CY 2014 rounds, making $8.5 billion ($3.5 billion authorized by Congress for
CY 2013 and $5 billion requested in the President’s 2014 Budget) in tax credit authority
available, pending Congressional authorization.
The CDFI Fund seeks to combine the CY 2013 and CY 2014 rounds in order to achieve
cost and efficiency savings to the government in addition to realigning the program
calendar. The combined round would also prevent an anticipated deficit of available
NMTCs and would allow the CDFI Fund to make additional allocation awards.
If Congressional authority for the CY 2014 NMTC allocations is not enacted by early
fiscal year 2014, the CDFI Fund will proceed with making $3.5 billion in awards
only for CY 2013 and likely consider combining CY 2014 and CY 2015 NMTC authority,
pending Congressional authorization.
At this time, the CDFI Fund anticipates opening the CY 2015 round of the NMTC Program
in the summer of 2014 with award decisions in the spring of 2015.
The New Markets Tax Credit spurs investment of private sector capital into distressed
communities by providing a tax credit to corporate or individual taxpayers who make
qualified equity investments in designated Community Development Entities (CDEs).
The CDEs, in turn, invest the capital raised into projects and businesses in low-income
communities. 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.
Since the inception of the NMTC Program, the CDFI Fund has made 749 awards—totaling
$36.5 billion in tax credit allocation authority—to CDEs through the NMTC Program.
The equity raised through the tax credit is stimulating economic growth, supporting
job creation and fostering small business growth in distressed communities across
America as demonstrated by
data recently released by the CDFI Fund.
2013/2014 Round of NMTC Program: Important Deadlines
- CDE Certification Application: August 9, 2013
- NMTC Program Application: September 18, 2013
- Prior Allocatees' Issuance of Qualified Equity Investments: December 31, 2013
Please refer to the NOAA for more details about these and other deadlines.
NMTC application materials and resources are available on the CDFI Fund's
NMTC Program web page.
CDE Certification application materials and resources are available on the CDFI
Fund's CDE Certification web page.
Learn About Applying to the NMTC Program
In addition to the detailed information that is available through the NOAA and NMTC
application, the CDFI Fund will conduct two one-hour conference calls to answer
applicant questions. Please see below for the dates and times for each call. No
presentations will be given during the calls; only questions from participants will
be addressed. The dial-in number and pass codes are the same for all calls. The
dial-in number is 1-888-790-3053 and the pass code is NMTC2013. No
prior registration is necessary.
NMTC Application Conference Calls
Tuesday, July 30, 2013, 3:00 p.m. EDT
Thursday, August 1, 2013, 4:00 p.m. EDT
The CDFI Fund has also posted presentations for potential applicants on the NMTC
Program page, www.cdfifund.gov/nmtc, under the Application Materials
For more information on the NMTC application or certification as a CDE, please contact
the CDFI Fund at email@example.com.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded over $1.7 billion to CDFIs,
community development organizations and financial institutions through the CDFI
Program, the Bank Enterprise Award Program, Capital Magnet Fund, the Financial Education
and Counseling Pilot Program, and the Native Initiatives. In addition, the CDFI
Fund has allocated $36.5 billion in tax credit authority to CDEs through the NMTC
For more information about the CDFI Fund or the NMTC Program, please visit: