Regulatory Alerts2019-02-25
Federal Reserve Guidance on New Markets Tax Credits and Public Welfare Investments
The Federal Reserve issued guidance determining that investments in qualified community development entities under the New Markets Tax Credit program are designed primarily to promote public welfare. This determination authorizes state member banks to make such investments under section 9(23) of the Federal Reserve Act, provided they comply with all other applicable statutory and regulatory criteria. The letter instructs Reserve Banks to distribute this information to supervised institutions and clarifies that these investments may be eligible for post-notice procedures under Regulation H.
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