Step 3: The Allocation Agreement

Applying for CDE Certification
The Allocation Agreement

Allocation Application Overview

 

 

Once a CDE has succeeded in securing a tax credit allocation through the New Markets Tax Credit program, it will receive its allocation agreement. This document sets forth the range of rules, regulations and restrictions the CDE must follow as a condition of receiving its tax credit allocation. It, in other words, becomes the CDE’s “bible” during the course of its operations. The agreement must be closely reviewed before it is signed.

The Agreement

The allocation agreement is divided into three sections, or schedules. The first schedule, “Organizational Specific Terms and Conditions” is based on the individual CDE’s allocation application, and translates the vision put forth in the application into performance obligations and restrictions…Download the PDF to learn more

Step 1: Applying for CDE Application

Step 2: The NMTC Application

Step 4: The Annual Audit

Step 5: Structuring Around State and Local Tax Issues

Step 6: NMTC Program Compliance