FROM THE OFFICE OF PUBLIC AFFAIRS
To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.
December 23, 2004
js-2167
Treasury and IRS Announce Final Regulations
Regarding The New Markets Tax Credit
The Department of the Treasury today announced that the Treasury Department and Internal Revenue Service have issued final regulations regarding the New Markets Tax Credit (NMTC).
The NMTC provides a tax credit to investors who make qualified equity investments in privately-managed investment vehicles called "Community Development Entities," or "CDEs." The CDEs are required to invest substantially all of the proceeds of the qualified equity investments in low-income communities.
The final regulations amend temporary regulations that were promulgated in December of 2001 and March of 2004. The final regulations clarify the application of the substantially-all requirement; establish a six-month cure period for correcting noncompliance; provide guidance on when a distribution by a CDE to an investor will not be treated as a redemption requiring the investor to recapture credits previously taken; and clarify when a business, or a portion of a business, will be eligible for NMTC financing.
- 30 -
REPORTS