IRS Issues Final Regulations on New Markets Tax Credit

Changes will Promote Greater Investment in Operating Businesses

In an effort to encourage greater investment in non-real estate businesses located in low-income communities, the Internal Revenue Service (IRS) published final regulations for the New Markets Tax Credit Program (NMTC Program) in the Federal Register today, September 28, 2012.

A result of efforts begun by the Treasury Department to understand from NMTC Program recipients what enhancements were needed to spur job creation and economic revitalization in low-income communities, the final rule endeavors to facilitate investments in the operations of non-real estate businesses, such as working capital and equipment loans. The rule defines a non-real estate business; addresses the reinvestment of capital; and outlines investing guidelines, among other issues.

Links:

Final Regulations
New Markets Tax Credit Program