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The 2014 NMTC Awards and Next Steps for an Extension


 

Second Quarter 2015

 

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by Bob Moss, National Director of Governmental Affairs, CohnReznick

With the announcement of awards by the CDFI Fund on June 15, 2015, we are reminded that we need to activate our advocacy efforts even more and press lawmaker’s for a permanent extension to retain this valuable financing tool. After last year’s disastrous extenders bill, the clock is ticking to get lawmakers to sign onto legislation introduced in the Senate and House, S. 591 and H.R. 855.

One of our best arguments is the track record of the program, most notably its public-private structure which leverages an unprecedented level of investment in low-income communities. Rep. Richie Neal (MA) is one of the House sponsors of H.R. 855, and there is a good reason why he supports it. A former mayor of Springfield, Massachusetts, Mr. Neal knows first-hand what the program can do for low-income communities. He also understands the current level of demand for the credit.

For this recent round, according to the New Market Tax Credit Coalition, CDFI received 263 applications for a total demand of nearly $20 billion in credits. Only a fraction of the demand was met, with 76 applications awarded $3.512 billion. While those awarded credit will have a significant impact in those areas, the industry needs to be as visible as possible on the hill and at home to gain more support. We have a great story to tell, and you can see this for yourself by reading the NMTC Progress Report at www.nmtccoalition.org.

H.R. 855, sponsored by Neal and Rep. Pat Tiberi (OH), has gained quite a few co-sponsors, while S. 591 only has six co-sponsors. This likely is attributed to the amount of work consuming the Senate Finance Committee working groups on tax reform right now. Chairman Orrin Hatch (UT) has tasked them with reporting their findings by June 26, 2015.

It will be interesting to see which recommendations they have for the NMTC. I was present in the meeting with staff from the Senate Community Development & Infrastructure Group and they seemed to recognize the need for more credit—a point the spokesman for the NMTC Coalition, Bob Rapoza, made several times. After June 26, the season starts for all of us to meet with our Senators and tell our stories. To the winning applicants of this 12th round of awards, that starts with invitations to Members of Congress to attend the 76 ground breakings in their states and communities where these projects are being built. That’s how, my friends, we get permanence and more credit.

Contact

Bob Moss is a CohnReznick Principal and National Director of Governmental Affairs. Bob leads the Firm’s federal and state government relations efforts, particularly in the area of affordable housing. He can be reached at bob.moss@cohnreznick.com or 617-648-1406.

For more legislative insight from Bob, visit our Capitol Connection webpage.


This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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