FROM THE OFFICE OF PUBLIC AFFAIRS To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. January 23, 2003PO-3788 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.
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