House Ways & Means Committee Calls for NMTC Program Improvement

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House Ways & Means Committee Calls for NMTC Program Improvement

September 30, 2020

On September 28, 2020, the House Committee on Ways & Means sent a bipartisan letter to the U.S. Department of the Treasury Community Development Financial Institutions Fund (CDFI Fund) Director Jodie Harris regarding the lack of Indian Country inclusion and parity in the New Markets Tax Credit (NMTC) program.

This action is a direct result of the House Ways & Means Committee’s Subcommittee on Select Revenue Measures historic hearing on Examining the Impact of the Tax Code on Native American Tribes on March 4, 2020. NAFOA has been a leading advocate on behalf of tribal governments for increased direct allocations for Indian Country. The letter was prompted in part by the latest slight by the Department of Treasury of tribal entities once again receiving no tax credit awards from the multi-billion dollar program.

In their letter, members of Ways & Means call upon the CDFI Fund to, "examine its allocation application and review process to identify and revise any elements that may inadvertently limit investment in Indian Country or the participation of minority CDEs. As the Subcommittee hearing made clear, we in Congress need to ensure that our tax laws do not result in systemic disparities between Indian tribes and other taxpayers." 
 

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NAFOA applauds Chairman Richard E. Neal (D-MA), Jason Smith (R-MO), Ron Kind (D-WI), Tom Reed (R-NY), Suzan DelBene (R-WA), David Schweikert (R-AZ), Gwen Moore (D-WI), Jackie Walorski (R-IN), Daniel Kildee (D-MI), Ron Estes (R-KS) for their dedication to fair access to capital and tax credits in Indian Country. NAFOA urges the Department of Treasury and the CDFI Fund to implement immediate changes to the review of NMTC applications in order to improve tribal access to much-needed capital.

NAFOA has been a strong advocate for greater inclusion in the New Markets Tax Credit Program.

Congress established the New Markets Tax Credit Program (NMTC) to encourages investment and capital flow to underserved low-income communities by providing investors with a Federal tax credit. Many of these communities, including Indian Country, are finding it difficult to attract necessary capital for projects of significance.

Since inception, Native communities and Community Development Enterprises (CDEs) have received very few allocations. The past two allocation rounds gave zero allocations to CDES committed to Indian Country.

For any other questions or concerns, please contact Dante Desiderio at dante@nafoa.org or (202) 631-2003.