The new markets tax credit : background, considerations and issues / Marlin Barrett, editor.

Includes index.

THE NEW MARKETS TAX CREDIT: BACKGROUND, CONSIDERATIONS AND ISSUES; THE NEW MARKETS TAX CREDIT: BACKGROUND, CONSIDERATIONS AND ISSUES; Library of Congress Cataloging-in-Publication Data; CONTENTS; PREFACE; Chapter 1: NEW MARKETS TAX CREDIT:AN INTRODUCTION; SUMMARY; OVERVIEW; PROGRAM COMPONENTS; NMTCINVESTMENT ACTIVITY; LEGISLATIVE DEVELOPMENTS; POLICY CONSIDERATIONS; Chapter 2: NEW MARKETS TAX CREDITS: UNLOCKING INVESTMENT POTENTIAL; ABSTRACT; I. WHAT IS THE NEW MARKETS TAX CREDIT PROGRAM?; II. WHY IS THE NMTC PROGRAM OF INTEREST TO BANKS?; III. HOW DOES THE NMTC PROGRAM WORK?

IV. WHAT ARE THE KEY RISKSAND REGULATORY ISSUES ASSOCIATEDWITH THE NMTC PROGRAM?V. WHO IS IN THE NEW MARKETS TAX CREDITPROGRAM TODAY?; VI. HOW DOES THE COST AND PRICINGSTRUCTURE WORK?; VII. WHAT BARRIERS HAVE CONSTRAINEDTHE GROWTH OF THE NMTC PROGRAM?; CONCLUSION; APPENDIX A: CASE STUDIES; APPENDIX B:GLOSSARY OF TERMS; APPENDIX C; Chapter 3: NEW MARKETS TAX CREDIT: BETTER CONTROLS AND DATA ARE NEEDED TO ENSURE EFFECTIVENESS; WHY GAO DID THIS STUDY; WHAT GAO RECOMMENDS; WHAT GAO FOUND; ABBREVIATIONS; BACKGROUND.

The financial structures of nmtc investmentshave become more complex and lesstransparent while treasury guidance coversonly the simpler structuresfees and retentions reduce the availablenmtc equity but lack of transparencymakes the size of the reduction uncertain; data on nmtc equity remaining in thelow-income community businesses are notsufficiently complete or accurate; cdfi fund data on distressed projects are notsufficiently reliable; conclusion; recommendations for executive action; agency comments and our evaluation; appendix i. objectives, scope, and methodology.

APPENDIX II. OTHER FEDERAL FUNDING USED INNEW MARKETS TAX CREDIT PROJECTSAPPENDIX III. REGRESSION ANALYSIS OF TOTAL FEESAND RETENTIONS ASSOCIATED WITH CHARACTERISTICSOF THE PROJECT USING CDFI FUND DATA, 2011-2012; Chapter 4: NEW MARKETS TAX CREDIT: THE CREDIT HELPS FUND A VARIETY OF PROJECTS IN LOW-INCOME COMMUNITIES, BUT COULD BE SIMPLIFIED; WHY GAO DID THIS STUDY; WHAT GAO RECOMMENDS; WHAT GAO FOUND; ABBREVIATIONS; BACKGROUND; CDES MADE NMTC INVESTMENTS, WHICH GENERALLYFILL GAPS IN PROJECT FINANCING, IN ALL 50 STATES, PRIMARILY INVESTING IN REAL ESTATE.

According to cde representatives, cdes offernmtc financing terms that benefit low-incomecommunity businesses current marketconditions present challenges and nmtcfinancing could be simplified; cdes use nmtcs for a range of purposes withoutcomes that can be difficult to measure andvary depending on the project; irs and the cdfi fund have establishedprocesses that will allow them to betterassess nmtc compliance; conclusion; matter for congressional consideration; recommendations for executive action; agency comments and our evaluation; appendix i: objectives, scope, and methodology.

The New Markets Tax Credit (NMTC) is a non-refundable tax credit intended to encourage private capital investment in eligible, impoverished, low-income communities. NMTCs are allocated by the Community Development Financial Institutions Fund (CDFI), a bureau within the United States Department of the Treasury, under a competitive application process. Investors who make qualified equity investments reduce their federal income tax liability by claiming the credit. This book describes the New Markets Tax Credit Program and the major considerations banks may need to address when using the tax cred.

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