Press Room
 

FROM THE OFFICE OF PUBLIC AFFAIRS

To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.

January 23, 2003
PO-3788

TREASURY ISSUES REVENUE RULING REGARDING
THE NEW MARKETS TAX CREDIT

Today the Treasury Department and the Internal Revenue Service issued a Revenue Ruling 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 Revenue Ruling clarifies that a partnership may finance the purchase of a qualified equity investment eligible for the NMTC with proceeds of nonrecourse debt of the partnership.

The NMTC is designed to encourage investment in low-income communities.


The text of Revenue Ruling 2003-20  is attached.

Related Documents: