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New
Markets Tax Credits Hit the Community
by
Scott Turner, Senior Community Investment Specialist, Federal Reserve
Bank of San Francisco
"The New Markets Tax Credit (NMTC) program was
enacted in December 2000 as part of the bipartisan Community Renewal Tax
Relief Act. The purpose of the NMTC is to spur private investment in low-income
urban and rural communities. The program is based on the idea that there
are viable business opportunities in low-income communities and that a
federal tax credit would provide attractive incentive to increase the
flow of investment capital to such areas" (excerpt from Making
the New Markets Tax Credit Conference).In his article, Robert Rapoza
provides a comprehensive overview about how the credits are intended to
work and where they went. He also explains how to become certified as
a Community Development Entity in order to apply for credits, how the
CDE must market the credit to investors, what investments qualify for
the credits, and what limitations exist on the use of the credits. Don't
miss the detailed charts that provide information about the distribution
of the first round of credits by geography and entity.
Robert A. Rapoza is president and principal of Rapoza
Associates, a public interest lobbying and government relations firm located
in Washington, D.C. Mr. Rapoza most recently successfully steered the
New Markets Tax Credit program to enactment and has also been responsible
for numerous legislative accomplishments including saving federal rural
housing and community development programs from budget cuts and establishing
the Intermediary Re-lending Program at the Agriculture Department.
In 2003, Phoenix, AZ received the largest
allocation of tax credits in the country. How did they do it and what
will it take to make this program that holds tremendous promise to revitalize
low-income communities work? The Story of
Phoenix's NMTC Allocation answers these questions.
Roberto Franco led the Phoenix team in applying for
the New Markets Tax Credit program and currently manages the program's
development and implementation. He has 22 years of professional experience
with emphasis in contract administration, strategic planning, negotiation,
finance, marketing, management, and administering and developing economic
development projects.
Want to know more? See The
New Markets Tax Credit: A Promising New Tool for Community Revitalization
by Stockton Williams in Community Investments: April 2001
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