Novogradac NMTC Working Group
Novogradac NMTC Working GroupOpposeAdvocacy
Summary: The Novogradac NMTC Working Group, representing over 120 organizations including community development entities and investors, opposes the proposed 100% risk weight for New Markets Tax Credit (NMTC) equity investments. They argue that NMTCs are low-risk, public-purpose investments and request that the agencies lower the risk weight to between 20% and 50% to better reflect their actual risk profile and encourage investment in low-income communities.
Comments attached from the Novogradac NMTC Working Group on Regulatory Capital Rule: Proposed Revisions to the Risk-Based Capital Framework for Category I and II Banking Organizations and Modifications to the Standardized Approach for Credit Risk.