The Community Development Financial Institutions Fund (CDFI Fund) has announced last week that it plans to award New Markets Tax Credits for the 2015 and 2016 fiscal years at the end of this year. This will result in NMTC awards to be made in 2016 in the amount of $7 billion instead of $3.5 billion. Combining the award announcements for 2015 FY and 2016 FY allows more Community Development Entities (CDEs) that have applied for NMTC allocation a better opportunity to be awarded NMTC. In recent NMTC rounds, only between 20 to 30 percent of CDEs that have applied have been successful in obtaining an award of NMTC allocation. The increased amount of NMTC available this year should help states like California, where CDEs serving the state of California have been less successful in obtaining NMTC allocation in the past few NMTC rounds.
The NMTC Program is an important tool for communities to attract private investment for community development and economic revitalization. In December 2015, Congress authorized the program for five years of NMTC allocation.
Click here to read the CDFI Fund’s official announcement.