The White House released a fact sheet to mark the one-year anniversary of the Inflation Reduction Act (IRA). Since its passage, the IRA has created more than 170,000 clean energy jobs, and companies have announced over $110 billion in clean energy manufacturing investments. The Biden administration also released a new feature that highlights stories of how the IRA is making a different for Americans in all 50 states and U.S. territories.

For two decades, federal clean energy tax credits have been available only to for-profit companies seeking to offset their tax burdens. But within the Inflation Reduction Act is a provision - known as direct pay - that has unleashed hundreds of billions of dollars of clean-energy tax credits to city and county governments, schools and universities, nonprofits, tribal communities, and other entities that do not pay federal taxes.

CDFA's Intro Tax Credit Finance Course examines the application of tax credit programs and their use in greater economic development finance efforts. This course will discuss the practical application of tax credit programs including new markets, low-income housing, historic preservation, and state-specific programs. Register today!

The U.S. Department of the Treasury and Internal Revenue Service (IRS) recently issued final rules and procedural guidance for the Low-Income Communities Bonus Credit program under Section 48(e) of the Internal Revenue Code and announced the application process would open by early fall. DOE has launched a landing page for the program and will provide, in conjunction with Treasury and the IRS, additional information about the application opening date and application materials in the coming weeks. 

Federal grant and tax credit dollars have significantly reduced the costs for farmers to install solar projects and power their businesses. The U.S. Department of Agriculture's (USDA) Rural Energy for America Program can cut installation costs up to 50 percent and the Inflation Reduction Act's Investment Tax Credit gives businesses up to a 30 percent credit for eligible projects.

As interest rates continue to rise, both new markets tax credit (NMTC) and non-NMTC financing have become more expensive. This can often lead to cash flow constraints for qualified activity low-income community businesses (QALICBs). QALICB borrowers may be forced into the difficult decision to either sell the business or file for bankruptcy protection as the only solution to these cash flow limitations. To avoid potential recapture of NMTCs, CDEs must understand the reinvestment requirements for funds received from the QALICBs as stated in Treasury regulations, as well as standard language in loan and fee agreements that may impact the calculations.

The Texas Department of Housing and Community Affairs awarded $87.7 million in housing tax credits to help fund the development of properties that offer reduced rent to Texans. With this funding, developers will construct or rehabilitate more than 3,100 housing units and offer affordable rent to households earning up to 80% of the median family income in their respective areas

Rep. Carol Miller, R-West Virginia, recently introduced the Rural Jobs Act in the House of Representatives. The bill would provide $1 billion of new markets tax credit (NMTC) allocation over the next two years for rural areas. The House version of the legislation's text was not immediately available, but it is expected to be identical to a version introduced in the Senate in May. That legislation would provide $500 million per year in NMTC allocation for 2023 and 2024 for Rural Jobs Zones, which are NMTC-eligible census tracts in rural communities with fewer than 50,000 residents.

SSBCI Learning Series - Enhanced Efforts to Engage and Support SEDI-Owned Business
August 24, 2023 - 2:00 PM - 4:00 PM Eastern

CDFA Food Systems Finance Webinar Series: Investment Tools & Food Systems
August 29, 2023 - 2:00 PM - 3:30 PM Eastern

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