Three members of the House Ways and Means Committee, including Congressmen Pat Tiberi (R-OH), Tom Reed (R-NY) and Richard Neal (D-MA), introduced a bill to permanently extend the New Markets Tax Credit (NMTC) Program. New Markets Tax Credit Extension Act of 2015 would ensure that rural communities and urban neighborhoods left outside the economic mainstream have access to financing to grow their economies and create jobs. The legislation would also provide an annual inflation adjustment and allow the NMTC to be taken against alternative minimum tax liability. Click here to read more.
President’s 2016 Budget Requests $233.5 million for Treasury's CDFI Fund. This funding would extend the CDFI Fund’s efforts to spur economic development and job growth in underserved communities. The requested amount includes $157.5 million for the Community Development Financial Institutions Program, a $5 million increase from FY 2015. The Budget also proposes permanently extending the New Markets Tax Credit Program at $5 billion per year and extending the CDFI Bond Guarantee Program through FY 2017. To read more click here.
Today the U.S. National Advisory Board on Impact Investing (NAB) named Darren Walker, President of the Ford Foundation, as the new Chair, joining the leadership team that includes Matt Bannick, Managing Partner at Omidyar Network, and Tracy Palandjian, CEO of Social Finance US. The NAB aims to catalyze the development of the impact investment market. "As a society we are facing enormous challenges and through impact investing we can create sustainable, scalable solutions for the public good. Impact investing is a win-win, generating beneficial social or environmental impacts alongside financial returns, "said Walker. "I am honored to take up this position at such an exciting time for impact investing and the NAB." With Darren as Chair, the NAB will continue to shape policy, to evolve alongside the challenges and opportunities of the impact investing sector, and to guide the impact investing community towards a collaborative and successful future. Click here to read more.
New Markets Tax Credits (NMTC) gets one year extension with $3.5 billion in annual credit authority provided for 2014 as a part of the one-year retroactive tax extender bill. The NMTC had expired at the end of 2013 and passage of this bill would allow the CDFI Fund to consider pending NMTC applications for 2014.
CDFI Fund programs received $230.5 million in appropriations as President Obama signed into law the FY 2015 Omnibus spending bill. The CDFI Fund programs appropriation has $152.4 million set aside for Financial and technical Assistance grants and $22 million for the Healthy Foods Financing Initiative. Remarkably, the bill waives the match requirement for FY '15 FA awards made to small and/or emerging CDFIs or Native CDFIs and both the match and the three-year grant cap are waived for HFFI applicants. This has been the largest appropriation for the CDFI Fund in five years.