October 23, 2013
Washington, DC - The U.S. Department of the Treasuryís Community Development
Financial Institutions Fund (CDFI Fund) announced today that it received a total
of 310 applications under the 2013/2014 round of the New Markets Tax Credit Program
(NMTC Program). The NMTC Program encourages economic development in low-income and
distressed communities by making tax credits available to Community Development
Entities (CDEs) for targeted investments in eligible areas.
The CDEs that applied under the 2013/2014 round are headquartered in 43 states,
the District of Columbia, and Puerto Rico. The applicants requested an aggregate
total of $25.8 billion in NMTC allocation authority.
The NMTC Program was established by Congress in December of 2000 and permits individual
and corporate taxpayers to receive a credit against federal income taxes for making
qualified equity investments in CDEs. The credit provided to the investor totals
39 percent of the cost of the investment and is claimed over a seven-year period.
Substantially all of the taxpayer's investment must in turn be used by the CDE to
make qualified investments in low-income communities. Successful applicants are
selected only after a competitive application and rigorous review process that is
administered by the CDFI Fund.
Through the first ten rounds of the NMTC Program, the CDFI Fund has made 749 awards
totaling $36.5 billion in tax credit allocation authority. This $36.5 billion includes
$3 billion in Recovery Act Awards and $1 billion of special allocation authority
to be used for the recovery and redevelopment of the Gulf Opportunity Zone.
For more information about the NMTC Program, visit the CDFI Fundís web site at www.cdfifund.gov/nmtc.