Treasury Awards $3.5B in NMTCsJune 16, 2015 – In The News
Daniel Madrid was quoted in the GlobeSt.com article "Treasury Awards $3.5B in NMTCs." Full text can be found in the June 16, 2015, issue, but a synopsis is below.
The U.S. Treasury Department recently allocated more than $3.5 billion in tax credits to 76 different organizations nationwide after announcing the 2014 New Market Tax Credits.
This credit program was created to encourage investment towards community development projects in lower income areas that might otherwise be overlooked.
Daniel Madrid said that one way of looking at the $3.5 billion allocations is to consider that the credit was essentially expired in 2014.
Many who use the credit program were extremely relieved upon hearing this news, Madrid said.
However, Madrid also said that, “the program remains in a state of uncertainty despite the clear success it has demonstrated in bringing private investment to the communities that need it most. In large part, this is due to the program’s complexity and outlier stories of alleged abuse, more so with state programs that mimic the Federal New Markets Tax Credit program."
Madrid said that if there is an extension to the New Markets Tax Credit program, then there will likely be significant positive change. “The numerous success stories are testament to the program’s effectiveness, and it would be a mistake to allow it to fade into obsolescence,” he said.