FOR IMMEDIATE RELEASE
February 27, 2007
Contact: Kevin M. Mukri
OCC Focuses on the New Markets Tax Credit Program
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today released a Community Developments Insights report entitled, "New Markets Tax Credits: Unlocking Investment Potential," highlighting key features of the New Markets Tax Credit (NMTC) program and major considerations facing bank investors who use the credits to develop and support community and economic development activities.
"The NMTC program has been an important tool for banks in their efforts to promote community revitalization and economic development in low-income neighborhoods," Comptroller John C. Dugan said. "Banks can invest in these credits in a variety of ways to assist eligible commercial transactions that require flexible credit terms and other features to make them feasible."
This Insights report examines the primary risks and regulatory considerations associated with the use of the NMTCs, and discusses strategies and approaches that bank investors have implemented to structure and manage these credits effectively. Bank investors have used various financing models to create investment opportunities, generate demonstrable community benefits, and meet their CRA obligations.
National banks often make NMTC investments under the "Part 24" community development investment authority, which encourages bank equity investments in activities that primarily promote the public welfare in a safe and sound manner.
This Community Developments Insights can be found on the news release page of the OCC Web site by going to http://www.occ.gov and clicking on the news release button on the left side of the page or by visiting http://www.occ.gov/topics/community-affairs/publications/index-ca-publications.html for the OCC Community Affairs publications page.
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