The U.S. House of Representatives announced the passing of the "Protecting Americans from Tax Hikes Act of 2015." This resulted in an extension through 2019 of the New Markets Tax Credit (NMTC) program that was originally established in 2000 with the goal of spurring revitalization efforts of low-income and impoverished communities across the United States. To date, total credit allocations have been $43.5 billion and the new provision authorizes $3.5 billion of new markets tax credits for each year from 2015 through 2019.
Nonprofits that are considering undertaking substantial capital projects in low-income and impoverished communities may benefit from the NMTC program. If you qualify, these tax credits can cover a substantial portion of the cost of a capital project for a nonprofit. BPM has assisted nonprofit recipients of the NMTC program with the accounting for these transactions.