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Proposed changes to the New Markets Tax Credit program to stimulate non-real estate investment in low-income communities are positive but are not enough, commenters tell IRS. The proposed regulations would revise reinvestment requirements for entities investing in operating businesses for the New Markets Tax Credit. IRS also asked for comments on the issue in advance of a hearing set for Sept. 29. The proposed changes are very limited and unlikely to have significant impact, the Opportunity Finance Network wrote in its letter. According to the group, which is a network of Community Development Financial Institutions in Philadelphia, these changes also leave a lot of uncertainties for investors and CDFIs to figure out.
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