CDFI Fund Seeks Public Comment on the NMTC Allocation and Qualified Equity Investment Tracking System

The Community Development Financial Institutions Fund (CDFI Fund), U.S. Department of the Treasury, is soliciting comments concerning the New Markets Tax Credit Program (NMTC Program) Allocation and Qualified Equity Investment Tracking System (AQEI).

The NMTC Program provides an incentive to investors in the form of tax credits over a seven year period and stimulates the provision of private investment capital that, in turn, facilitates economic and community development in Low-Income communities.

The CDFI Fund developed the AQEI to, among other things: (1) enhance an Allocatee’s ability to report to the CDFI Fund timely information regarding the issuance of its Qualified Equity Investments; (2) enhance the CDFI Fund’s ability to monitor the issuance of Qualified Equity Investments to ensure that no Allocatee exceeds its allocation authority, and to ensure that Qualified Equity Investments are issued within the timeframes required by the Allocation Agreement and IRC §45D; (3) provide the CDFI Fund with basic investor data that can be aggregated and analyzed in connection with NMTC Program evaluation efforts; and (4) provide the CDFI Fund with information about the status of Qualified Active Low-Income Community Businesses and Qualified Low-Income Community Investments at the end of the tax credit compliance period.

Comments are invited on two new data points in response to a U.S. Government Accountability Office report (GAO-14-500: New Markets Tax Credit, Better Controls and Data Are Needed to Ensure Effectiveness), recommendation to better measure the depth of public subsidy associated with New Markets Tax Credit transactions.

1. Other Tax Credit Amount: Report tax credit amount received in conjunction with this pass‐through entity for another tax credit program.
2. Other Public Subsidy Used to Fund Leveraged Loan: Report the amount of other public sources (local, state, and federal), excluding other tax credits, used to fund the leveraged loan and public sources that are received by Affiliates of the QALICB and used to fund the leverage loan.

A complete list of the questions for which the CDFI Fund is seeking comment is contained in the Notice and Request for Public Comment that will be published in the Federal Register on November 28, 2022.

Comments must be submitted in writing within 60 days after the date of publication of the Federal Register notice to Heather Hunt, Program Manager for the Office of Compliance Monitoring and Evaluation (OCME), CDFI Fund at CCME@cdfi.treas.gov.

Requests for additional information should be directed to Heather Hunt, OCME Program Manager, CDFI Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington D.C. 20220, (202) 653-0423 (not a toll-free number). Other information regarding the CDFI Fund and its programs may be obtained on the CDFI Fund website at https://www.cdfifund.gov

Related Materials:

• Federal Register Notice
• AQEI Data Point Description
• Current AQEI User Guide
• Current QEI Closeout Report Guide