CDFI Fund Releases Application Demand for 2012 Round of NMTC Program

Washington, DC - The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today that it received a total of 282 applications under the 2012 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 2012 round are headquartered in 44 states, the District of Columbia, and Puerto Rico. The applicants requested an aggregate total of $21,901,474,907 in NMTC allocation authority.

"The steady demand for New Markets Tax Credit allocation authority illustrates how effective this program is in encouraging economic and community development in low-income communities across America," said CDFI Fund Director Donna J. Gambrell. "The 2012 round is the tenth award round of the program, and our strong application numbers illustrate how we've established the New Markets Tax Credit as an essential tool for generating impact through investments."

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.

The application deadline was September 12, 2012, although applicants affected by Hurricane Isaac were given a limited extension on a case-by-case basis. The CDFI Fund anticipates announcing the organizations that will receive New Markets Tax Credit allocations in early 2013, subject to Congressional reauthorization.

Through the first nine rounds of the NMTC Program, the CDFI Fund has made 664 awards totaling $33 billion in tax credit allocation authority. The NMTC Program's innovative approach to using tax credits to promote economic development in low-income communities led to its recognition earlier today as a "Bright Idea in Government" by Harvard University's Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government. Additional information about the NMTC Program can be found on the CDFI Fund's web site at www.cdfifund.gov/nmtc.