CDVCA is a strong advocate for regulatory reform that would make the New Markets Tax Credit (NMTC) more usable for investments in operating businesses, particularly for growth capital equity investments in rapidly growing companies of the type commonly made by venture capital funds. While the NMTC was originally intended to serve this purpose, certain mechanical problems with the way in which the NMTC operates make it virtually impossible to use the credit for true venture capital investing.
CDVCA submitted three sets of comments, as well as in-person testimony to the Department of Treasury and IRS, as follows:â–¶Â September 6, 2011 comments, submitted in response to notice REG-114206-11 in the Federal Register.
â–¶Â In-person testimony given by CDVCA President, Kerwin Tesdell, on September 29, 2011 to attorneys at the US Department of the Treasury and the Internal Revenue Service.
â–¶ Â February 6, 2012 comments, submitted in response to a notice in the Federal Register, dated November 7, 2011.
About the NMTC Program
The New Markets Tax Credit (NMTC) Program, administered by the CDFI Fund of the Department of Treasury, provides tax credits for new private sector investment in economically distressed communities through certified Community Development Entities (CDEs). Through a competitive allocation procedure, the CDFI Fund awards tax credits based on submissions of Allocation Applications.
For more information on NMTC, click visit our NMTC webpage atÂ www.cdvca.org/public-policy/nmtc-program
If any member has questions or concerns please, feel free to contact CDVCA at firstname.lastname@example.org