The CDFI Fund has released the Notice of Allocation Availability (NOAA) for the 2020 Calendar Year (CY) round of the New Markets Tax Credit (NMTC) Program. Up to $5 billion in tax credit allocation authority is available in the 2020 round, a more than 40 percent increase over last year. The complete NOAA can be found here.
The NOAA details several important changes and deadlines for the 2020 round, including:
- New this year, applicants are required to complete and save an Application Registration in AMIS by October 9, 2020. If an applicant does not meet this deadline they will not be able submit a CY 2020 Round Allocation Application in AMIS.
- Also new this year, prior-year NMTC Allocatees will be subject to revised minimum thresholds for QEI issuance and closing of QLICIs with respect to their prior-year NMTC Allocations.
- The CDFI Fund has also updated the NMTC Application FAQs and the NMTC Compliance FAQs with information regarding compliance and reporting requirements during the COVID-19 pandemic.
- The final deadline for the application is November 16, 2020.
Without Congressional action, the NMTC’s authorization will expire on December 31, 2020, putting further allocations in jeopardy. The NMTC has proven to be a valuable community development tool, spurring more than $100 billion in total financing since inception and creating more than one million jobs.
OFN supports the bipartisan New Markets Tax Credit Extension Act of 2019 introduced by Senator Roy Blunt (R-MO), Senator Ben Cardin (D-MD), along with Representative Terri Sewell (D-AL) and Representative Tom Reed (R-NY). This legislation would make the NMTC permanent, maintain the allocation to $5 billion per year, and index it to inflation in future years. The bill would also provide NMTC investors with relief from the Alternative Minimum Tax.