The Native CDFI Network (NCN) invites Native CDFIs and certified Community Development Entities (CDEs) to join its formal comment letter on the New Markets Tax Credit (NMTC) Allocation Application for the Calendar Year (CY) 2024-2026 Funding Rounds. In response to a request for public comment from the CDFI Fund, NCN developed the comment letter, which features several consensus-based priorities to streamline and strengthen the NMTC Program Allocation Application process to ensure Indian Country’s equitable access to and usage of NMTC Program allocations.
For a variety of reasons, few Native CDEs have participated in NMTCs despite their proven benefits for Native communities. For example, CY 2021 saw not a single Native CDE receive an NMTC award, and CY 2022 saw just two Native CDEs receive allocations out of a total of 102 allocatees. In addition, the NMTC Program has no built-in mechanism to ensure that NMTC investments reach Native communities or that Native entities are equipped with the capacity and expertise to successfully compete in the NMTC market as CDEs.
NCN’s comment letter sets forth several priorities that would provide newfound certainty to existing and prospective Native CDEs that developing an NMTC application – and investing in the building of the capacity needed to deploy an NMTC award – stands a good chance of paying off in the form of an NMTC award, which is bound to increase the number of Native CDE applicants for each new funding round as well as prompt a greater number of Native entities to secure CDE certification to gain application eligibility. The stated priorities also seek to level the NMTC playing field for Indian Country by revising NMTC regulations to address the unique circumstances and goals of Native communities.
The deadline to sign on to the NCN comment letter is 5:30 p.m. ET on Tuesday, March 26.
To read the NCN comment letter, click here.
To sign on to the NCN comment letter, click here.