Spring 2007 issue of Horizons

INDUSTRy u

real estate (cont'd)

LEGISLATIVE UPDATE

The initial legislation establishing the NMTC only provided for the program to run through 2007. The Tax Relief and Health Care Act in December 2006 extended the NMTC program for only one year, through 2008. Currently, there is legislation introduced in Congress, The New Market Tax Credit Extension Act of 2007 (H.R. 2075 / S. 1239), which would reauthorize the NMTC program through 2013. The NMTC program has proved to be a very effective new program that provides tremendous opportunities for private investors, community development entities and businesses and developments in low-income communities. Of the $12.1 billion allocation authority already awarded, more than $7 billion of equity has already been raised and is being put to use funding businesses in the nation’s low-income communities. As evidenced by the large number of applicants and their investment requests, which have far exceeded the limits of the program, this program has the potential to put billions of additional dollars in loans and investments to work in our nation’s most economically distressed areas. Summary

Questions? Contact:

Bryan Keller, CPA Partner-in-Charge Real Estate Services Group 314.290.3341 bryan.keller@rubinbrown.com or David Herdlick, CPA Partner Real Estate Services Group 314.290.3383 dave.herdlick@rubinbrown.com

35 u summer 2007 issue

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