[Federal Register Volume 85, Number 249 (Tuesday, December 29, 2020)]
[Notices]
[Pages 85855-85856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28649]


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DEPARTMENT OF THE TREASURY


Community Development Financial Institutions Fund; Notice and 
Request for Public Comment

SUMMARY: The U.S. Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act of 1995 (PRA). Currently, the Community 
Development Financial Institutions Fund (CDFI Fund), U.S. Department of 
the Treasury, is soliciting comments concerning the New Markets Tax 
Credit Program (NMTC Program) Allocation Application, for the fiscal 
year (FY) 2021-FY 2024 funding rounds (hereafter, the Application or 
Applications). The CDFI Fund is required by law to make the Application 
publicly available for comment prior to submission for a new PRA 
number.

[[Page 85856]]


DATES: Written comments must be received on or before March 1, 2021 to 
be assured of consideration.

ADDRESSES: Direct all comments to Christopher Allison, NMTC Program 
Manager, CDFI Fund, at [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to Christopher Allison, NMTC Program Manager, CDFI 
Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220, (202) 653-0421 (not a toll-free number), or by 
email to [email protected]. Other information regarding the CDFI Fund 
and its programs may be obtained on the CDFI Fund website at https://www.cdfifund.gov. The NMTC Allocation Application Template is provided 
online to aid the public in providing comments requested by this 
Notice, and presents the questions that will comprise the online 
Application, including substantive revisions relative to the existing 
Application. These proposed substantive revisions relative to the 
existing Application are highlighted in yellow in the NMTC Allocation 
Application Template. This document may be obtained from the NMTC page 
of the CDFI Fund's website at https://www.cdfifund.gov/nmtc.

SUPPLEMENTARY INFORMATION: 
    Title: NMTC Program Allocation Application.
    OMB Number: 1559-0016.
    Abstract: Title I, subtitle C, section 121 of the Community Renewal 
Tax Relief Act of 2000 (the Act) amended the Internal Revenue Code 
(IRC) by adding IRC Sec.  45D and created the NMTC Program. The 
Department of the Treasury, through the CDFI Fund, Internal Revenue 
Service, and Office of Tax Policy, administers the NMTC Program. In 
order to claim the NMTC, taxpayers make Qualified Equity Investments 
(QEIs) in Community Development Entities (CDEs) and substantially all 
of the QEI proceeds must, in turn, be used by the CDE to provide 
investments in businesses and real estate developments in low-income 
communities and other purposes authorized under the statute.
    The tax credit provided to the investor totals 39 percent of the 
amount of the investment and is claimed over a seven-year period. In 
each of the first three years, the investor receives a credit equal to 
five percent of the total amount paid for the stock or capital interest 
at the time of purchase. For the final four years, the value of the 
credit is six percent annually. Investors may not redeem their 
investments in CDEs prior to the conclusion of the seven-year period 
without forfeiting any credit amounts they have received.
    The CDFI Fund is responsible for certifying organizations as CDEs, 
and administering the competitive allocation of tax credit authority to 
CDEs, which it does through annual allocation rounds. As part of the 
award selection process, CDEs will be required to prepare and submit an 
Application, which consists of five sections: Business Strategy; 
Community Outcomes; Organization Capacity; Capitalization Strategy; and 
Previous Allocations and Awards. Capitalized terms not defined in this 
Notice (other than titles) have the meaning set forth in the NMTC 
Allocation Application, Internal Revenue Code (IRC) Sec.  45D or the 
IRS NMTC regulations.
    Current Actions: Extension with significant changes from currently 
approved collection.
    Type of Review: Regular.
    Affected Public: CDEs applying for NMTC Allocations.
    Estimated Number of Respondents: 222.
    Estimated Annual Time per Respondent: 300.
    Estimated Total Annual Burden Hours: 66,600 hours.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record and may be published on the Fund website at http://www.cdfifund.gov.
    Comments concerning the Application are invited on: (a) Whether the 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of technology; and (e) estimates 
of capital or start-up costs and costs of operation, maintenance, and 
purchase of services required to provide information.
    Authority
    26 U.S.C. 45D; 26 CFR 1.45D-1.

Jodie L. Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2020-28649 Filed 12-28-20; 8:45 am]
BILLING CODE 4810-70-P