Two things are clear to me from my recent trip to Washington, D.C., for the New Markets Tax Credit Coalition Conference:
- Officials hear Indian Country’s concern about the recent lack of New Markets Tax Credit (NMTC) allocations.
- Everyone who understands the incredible need for private investment in American Indian, Alaska Native and Native Hawaiian communities needs to continue to speak up.
While the coalition conference was underway, the House and Senate were debating short-term appropriations bills to avoid a shutdown. Since the close of our conference, Congress has passed a bill that includes a one-year extension of NMTC. That takes care of the short-term problem — a lack of allocation authority to fund those applications that were submitted Oct. 1, 2014.
Now it is time to look at the long-term problem. The demand for NMTC in Indian Country among high-impact projects drastically outstrips the supply. During the Coalition conference, various officials from the U.S. Treasury and CDFI Fund expressed their understanding that Indian Country leaders have not been satisfied by recent NMTC allocation rounds. In the past two allocation rounds, no Community Development Entity (CDE) with an exclusive commitment to serve Indian Country has received NMTCs. Despite this disturbing trend, some great Indian Country projects have moved forward. But this trend has drastically decreased the flow of allocation to Indian Country projects and increased the cost of those transactions that have closed.
At its recent listening session with Senate Finance Committee staff, the Native American Finance Officers Association (NAFOA) distributed a list of common sense solutions to various problems facing Native communities. Among these were numerous proposals that would increase the flow and decrease the cost of NMTC capital to America’s most underserved communities.
Travois wants to connect all of the entrepreneurs, change agents and community leaders with an interest in an improved NMTC program. Tweet at us, call us or email me any time if you share the desire to see more private capital in tribal projects. We can connect you with other Indian Country voices so, eventually, our collective message will result in positive change.