federal_register: 01-10545
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| document_number | title | type | abstract | publication_date | pub_year | pub_month | html_url | pdf_url | agency_names | agency_ids | excerpts |
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| 01-10545 | Guidance, New Markets Tax Credit Program | Notice | Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000 (the "Act"), as enacted by section 1(a)(7) of the Consolidated Appropriations Act, 2001 (Pub. L. 106-554, December 21, 2000), amended the Internal Revenue Code (the "IRC") by adding IRC section 45D, New Markets Tax Credit. Section 45D requires the Secretary of the Treasury ("Treasury") to establish a program that will provide an incentive to investors in the form of a tax credit over seven years, which is expected stimulate investment in new private capital that, in turn, will facilitate economic and community development in distressed communities. Section 45D, among other things, also requires the Secretary to issue guidance on (i) how entities may apply to receive allocations of New Markets Tax Credits ("NMTCs"); (ii) the competitive procedure through which such allocations will be made; and (iii) the actions that will be taken to ensure that proper allocations are made to appropriate entities. The Secretary has delegated such authority to the Under Secretary (Domestic Finance), who has in turn delegated such authority to the Director of the Community Development Financial Institutions Fund (the "Fund"). Pursuant to section 121(f) of the Act, this document provides guidance on how an entity may apply to become certified as a "qualified community development entity" ("CDE"), how a CDE may apply to receive an allocation of NMTCs, the competitive procedure through which such allocations will be made, and the actions that will be taken to ensure that proper allocations are made to appropriate entities. In addition, this Guidance seeks comment from the public as to certain application and allocation issues that the Fund may address in subsequent guidance (see Section VII, "Pending Issues," for further detail). All material submitted in response to this Guidance will be available at the Fund for public inspection and copying. As provided by IRC section 45D(i), Treasury is authorized to prescribe regulations relating to the NMTC Program as may be appropriate, including regulations that (i) limit NMTCs for investments that are directly or indirectly subsidized by other Federal tax benefits, including the Low-Income Housing Tax Credit under IRC section 42, and the exclusion from gross income for certain tax-exempt bond interest under IRC section 103; (ii) prevent abuse of the purposes of IRC section 45D; (iii) provide rules for determining whether the "Substantially All Test" found at IRC section 45D(b)(1)(B) is treated as met; (iv) impose appropriate reporting requirements; and (v) apply IRC section 45D to newly formed entities. Simultaneously with the issuance of this Guidance, the Internal Revenue Service ("IRS") is issuing an Advance Notice of Proposed Rulemaking (the "ANPRM") that invites comments from the public on certain issues that the IRS may address in regulations relating to the NMTC Program and IRC section 45D. The Fund has the authority to allocate to CDEs the authority to issue to their investors, for calendar year 2001, up to the aggregate amount of $1 billion in equity as to which NMTCs may be claimed; for each of years 2002 and 2003, up to $1.5 billion in equity as to which NMTCs may be claimed; for each of years 2004 and 2005, up to $2 billion; and for each of years 2006 and 2007, up to $3.5 billion. Amounts not allocated in any calendar year may be carried over to succeeding years, to the extent provided in IRC Sec. 45D(f)(3). This Guidance does not solicit applications either for CDE certification or allocations of NMTCs. The Fund expects, in the future, to issue additional guidance that will solicit CDE certification applications and applications for NMTC allocations. | 2001-05-01 | 2001 | 5 | https://www.federalregister.gov/documents/2001/05/01/01-10545/guidance-new-markets-tax-credit-program | https://www.govinfo.gov/content/pkg/FR-2001-05-01/pdf/01-10545.pdf | Treasury Department; Community Development Financial Institutions Fund | 497,78 | Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000 (the "Act"), as enacted by section 1(a)(7) of the Consolidated Appropriations Act, 2001 (Pub. L. 106-554, December 21, 2000), amended the Internal Revenue Code (the "IRC")... |