IDEAS home Printed from https://ideas.repec.org/p/fip/fedfcw/2010-06.html
   My bibliography  Save this paper

Enhancing New Markets Tax Credit pipeline flow: Maintaining a continuous deal flow in spite of funding gaps and market volatility

Author

Listed:
  • Kevin Leichner

Abstract

Kevin Leichner examines New Markets Tax Credit (NMTC) performance during the Great Recession and provides recommendations for maintaining deal flow to support the NMTC project pipeline and overcome financing gaps. Between 2002 and 2009, the Federal government allocated $26 billion worth of NMTC to support community development projects. Based on new data from the respondents to a Winter 2010 Center for Community Development Investments survey as well as three case studies, NMTC stakeholders are finding their NMTC portfolios are outperforming other investments. At the same time, however, their responses also indicate that the Congressional expansion of the program, with larger annual allocations, may exceed the ability of the NMTC industry to provide high-quality investor-backed projects. As a consequence, investor demand for the tax credits has been falling, resulting in lower investor pay-ins and reduced impact in low-income communities. Based on survey responses, case studies, and industry literature, the paper concludes with recommendations for strengthening the program and stimulating demand.

Suggested Citation

  • Kevin Leichner, 2010. "Enhancing New Markets Tax Credit pipeline flow: Maintaining a continuous deal flow in spite of funding gaps and market volatility," Community Development Working Paper 2010-06, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfcw:2010-06
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/community-development/wp-content/uploads/sites/3/working_paper_2010_06_leichner.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Doug Bystry, 2005. "Case study from application to construction: Clearinghouse CDFI puts new markets tax credits to work," Community Development Innovation Review, Federal Reserve Bank of San Francisco, issue 1, pages 37-42.
    2. Lauren Lambie-Hanson, 2008. "Addressing the prevalence of real estate investments in the new markets tax credit program," Community Development Working Paper 2008-04, Federal Reserve Bank of San Francisco.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colby Dailey & Ben Thornley, 2010. "Building scale in community impact investing through nonfinancial performance measurement," Community Development Innovation Review, Federal Reserve Bank of San Francisco, issue 01, pages 01-46.
    2. Julia Sass Rubin, 2009. "Shifting ground: Can community development loan funds continue to serve the neediest borrowers?," Community Development Working Paper 2009-01, Federal Reserve Bank of San Francisco.
    3. Freedman, Matthew, 2012. "Teaching new markets old tricks: The effects of subsidized investment on low-income neighborhoods," Journal of Public Economics, Elsevier, vol. 96(11), pages 1000-1014.

    More about this item

    Keywords

    Community development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfcw:2010-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.