|
The New Markets Tax Credit provides individuals and corporations with an incentive to invest in a community development entity (CDE) that provides capital and financial advisory services to low-income communities. The investor receives a credit against Federal taxes of 5 to 6% of the amount invested for each of the years the investment is held. The credit can be taken for up to 7 years. The credit will be available for up to $15 billion in investments in CDEs designated by the U. S. Treasury Department over the 2001- 2007 period. Investors must purchase stock or partnership interest in a CED for cash at original issuance. Credit available at time of purchase (1 year) and on 6 anniversary dates of acquisition of investment
Target Audience:
Corporations and individuals looking to reduce Federal tax liability up to a 7-year period.
Investors wanting to invest in low-income community businesses. Financial institutions seeking to reduce Federal tax liability and obtain Community Reinvestment Act credit through the same investment.
Investors in Low-Income Housing Tax Credit (LIHTC) projects that may want a similar tax credit investment for commercial development.
Community development corporations seeking to broaden their source of capital through investments in for-profit subsidiaries.
Powerpoint Presentation
FAQ
|
