New Market Tax Credits Questions Updated

The New Market Tax Credit’s Frequently Asked Questions document which is put out by the Community Development Financial Institutions Fund (CDFI Fund) has been updated. The update replaces the September 2011 version by adding, revising, or updating select questions from the earlier version. Updated guidance includes:

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  • Dissolution of subsidiary;
  • Termination of Allocation Agreements;
  • Designating a “non-real estate qualified equity investment”;
  • Clarification of “real estate QALICB” versus a “non-real estate QALICB;”
  • Defining Material Events;
  • Restrictions on the use of bond proceeds;
  • Process for amending Allocations Agreements, adding subsidiary CDEs, and changing Service Areas;
  • Meeting the requirement of the Allocation Agreement on Targeted Distressed Communities for a QALICB with tangible property in several census tracts;
  • Defining “Affordable Housing” and measuring “Innovative Investments” for the purpose of meeting the Allocation Agreement;
  • Determining if a Qualified Low-Income Community Investment supports businesses that obtain HUB Zone certification.

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