(Fall 2007) New Markets Tax Credit Program : Round V To Be Announced // Round VI To Be Opened

For all of us currently participating in the New Markets Tax Credit Program and those interested in getting involved, we can look forward to a busy next few months. Between now and late fall, we can anticipate the announcement of the 2007 Allocations – those who submitted a competitive application for NMTC Allocation will find out if their request was successful. A bit later, we can look forward to the opening of the 2008 Allocation Application Round. This includes the release of the application for what is now the final round for the NMTC Program. As the Principal of NMTCeXchange – a national NMTC consulting firm – I would suggest entities that are interested in applying for NMTC Allocation begin NOW, if they have not already.

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis

NMTC Allocation Rounds: Overview

The NMTC Program is gearing up for the 'opening' of its next competitive Allocation Application round: Round VI -2008. This, of course, means, there have been five previous rounds.

Please do not be confused if you have seen the rounds originally listed in a 2001-2002 (Round I) // 2003-2004 (Round II) format. For simplicity sakes, someone flexed their executive power and decided it would be a bit easier to track the Program if the Rounds were listed by single year only.

Let's Review:

• Round I (2003): $2.5B of NMTCs were allocated
  
  
• Round II (2004): $3.5B of NMTCs were allocated
  
  
• Round III (2005): $2B of NMTCs were allocated



• Round IV (2006): $4.1B of NMTCs were allocated (Increased by $600MM for GO Zone Allocation)



• Round V (2007): $3.9B of NMTCs can be allocated (Increased by $400MM for special GO Zone Allocation)

Q: Why is this bold red?

A: It is bold red because this is the round yet to be ANNOUNCED. In fact, hundreds of applicants across the nation are waiting with baited breath to to find out whether they received a piece of the $3.9B NMTC pie.

• Round VI (2008): $3.5B of NMTCs to be allocated

Q: Why is this bold red?

A: It is bold red because this is the round yet to be OPENED. In fact, hundreds of prospective applicants across the nation are waiting with baited breath for the 2008 NMTC Allocation Application so that they may competitively compete for a piece of the $3.5B NMTC Pie.

I hope this was helpful & welcome your comments!

Regards,

NaShawndra Jackson-Davis

NMTC INTRO - The Beginning

Why don't we cover the basics of the NMTC Program's humble beginnings:

• The New Markets Tax Credits (NMTC) Program was signed into law December 21, 2000 via the Community Renewal Tax Relief Act of 2000
• The NMTC Program is administered by the CDFI Fund which is part of the Department of Treasury.
• The Program was initially written into law with an expiry date of 2007 (we will talk later about the extension of the program and efforts to bring about permanent NMTC legislature).

According to the CDFI Fund, it:

Is authorized to allocate to CDEs the authority to issue to their investors
up to the aggregate amount of $16 billion in equity as to which NMTCs can be
claimed, including $1 billion of special allocation authority to be used for the
recovery and redevelopment of the Gulf Opportunity Zone.
To date, the Fund
has made 233 awards totaling $12.1 billion in allocation authority.

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis

Welcome to New Markets Tax Credits

Welcome Everyone,

Wow, so much to talk about and no real place to start. I presume I can discuss a bit, what I am looking to accomplish with this blog.

First and foremost, promoting eXchange regarding New Markets Tax Credits is the ultimate goal. By providing forums to have eXchange (of information, corrections, opportunities, updates, disagreements, support, etc) we learn.

The next goal is to learn. Through eXchange we can all learn about NMTCs (its application, usages, legislation, status, etc.)

Well, I've exhausted my extensive list of NMTC related goals and am actually anxious to get on with the rest of the blog!

I hope this was helpful & welcome your comments!
Regards,
NaShawndra Jackson-Davis