August 11, 2014
Birmingham, AL – The New Markets Tax Credit Coalition in a press release today responded to two reports that were critical of the new markets tax credit (NMTC). In its report, “New Markets Tax Credit: Better Controls and Data Are Needed to Ensure Effectiveness,” the U.S. Government Accountability Office (GAO) said that NMTC investors receive an unduly large annual return. In its statement, the NMTC Coalition counters that GAO overestimated those figures and that actual NMTC investor returns are aligned with market rates of 6 to 7 percent annually. The group also responded to a report released by Sen. Tom Coburn, R-Okla., “Banking on the Poor,” which suggested that the NMTC has not succeeded in helping struggling communities. The NMTC Coalition asserts in its response that the program has delivered more than $60 billion in capital to businesses in the nation’s poorest communities.
June 5, 2014
Birmingham, AL – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today announced $3.5 billion in New Markets Tax Credit awards aimed at revitalizing low-income communities and increasing economic opportunity nationwide. A total of 87 organizations (Allocatees) across the country will receive tax credit allocation authority under the calendar year 2013 round of the New Markets Tax Credit Program.
“The New Markets Tax Credit Program creates jobs and critical investments in low-income neighborhoods and rural communities across the nation,” said Amias Gerety, Acting Assistant Secretary for Financial Institutions. “Often the New Markets Tax Credit is the most critical piece of the puzzle when trying to finance important economic development projects across the country. Its ability to attract private-sector capital into some of the most economically distressed and underserved communities is a hallmark of this important economic development program.”