WASHINGTON (4/25/13)--The U.S. Treasury's Community Development Financial Institutions (CDFI) Fund has awarded $3.5 billion in tax credit allocation authority to 85 applicants in the 2012 round of the New Market Tax Credit (NMTC) program.
Altogether, 282 applicants requested approximately $21.9 billion in credits during the 2012 round of the NMTC. "The New Markets Tax Credit addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to patient, private investment capital," Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri said in a release.
Credit unions are among those eligible to participate in the NMTC, which seeks to spur the investment of new private sector capital into low-income communities. To do so, it permits individual or corporate taxpayers to receive a credit against federal income taxes for making Qualified Equity Investments. Those investments must be made in designated Community Development Entities. The CDFI Fund allocates the tax credits annually through a competitive application process.
For the CDFI Fund release, use the resource link.