Community Development Financial Institutions Fund, Department of the Treasury
Supporting Statement for the New Markets Tax Credit Program
Allocation Tracking System, 1559-0024
Renewal
1. Circumstances necessitating collection of information
Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000 (the Act), as enacted by section 1(a)(7) of the Consolidated Appropriations Act, 2001 (Public Law No. 106-554, December 21, 2000), amended the Internal Revenue Code (IRC) by adding IRC Section 45D, New Markets Tax Credit. Pursuant to IRC section 45D, the Community Development Financial Institutions (CDFI) Fund implements the New Markets Tax Credit (NMTC) Program, which is expected to stimulate investment in private capital that, in turn, will facilitate economic and community development in low-income communities. In order to qualify for an allocation of tax credits under the NMTC Program, an entity must be certified as a Community Development Entity (CDE) and submit an allocation application to the Fund. Via a competitive process, the CDFI Fund awards NMTC allocation awards to select CDEs, based upon information submitted in their NMTC Allocation Application. Entities receiving a NMTC allocation must enter into an allocation agreement with the Fund. The allocation agreement contains the terms and conditions, including all reporting requirements, associated with the receipt of a NMTC allocation. The Fund requires each allocate to use an electronic data collection and submission system, known as the allocation tracking system (ATS), to report on the information related to its receipt of a Qualified Equity Investment (QEI).
The Allocation Tracking System (ATS) will enhance the Allocatee’s ability to report such information to the Fund in a timely fashion. This information will also be used by the Treasury Department (including both the CDFI Fund and the Internal Revenue Service (IRS)) to: (1) monitor the issuance of QEIs to ensure that no Allocatee exceeds its allocation authority; (2) ensure that QEIs are issued within the timeframes required by the NMTC Program regulations and the legal agreements signed between the CDFI Fund and the Allocatee; and (3) assist with NMTC Program evaluation efforts.
2. Method of collection and use of data
The data will be collected electronically by mandatory submission from those entities that have received a NMTC allocation award. The collected data will be used by the CDFI Fund for the purposes outlined under #1 above.
3. Use of Information Technology
ATS will be made available on the CDFI Fund’s website, via a secure Internet portal that requires password entry. The CDFI Fund will only accept data using the electronic method set forth in ATS. This will facilitate the collection of consistent data from all Allocatees, and will clearly articulate to Allocatees the data that is required for submission.
4. Efforts to identify duplication
ATS does not duplicate any other CDFI Fund or Federal program information gathering tool.
5. Impact on small entities
This collection of information does not have a significant impact on small entities.
6. Consequences of less frequent collection and obstacles to burden reduction
The CDFI Fund cannot administer the NMTC Program, monitor timely usage of tax credit allocation awards, and fulfill its statutory obligations without the collection of data through ATS.
7. Circumstances requiring special information collection
Information collection may occur more often than quarterly. An Allocatee will report information in ATS on a per event basis. An event occurs when an investor places a QEI into the Allocatee. Because an Allocatee can issue a QEI at any point in time during a calendar year, it is possible that certain Allocatees may provide information to the CDFI Fund more frequently than quarterly.
Respondents will have to retain records for longer than 3-years. Allocatees are required to retain documentation to verify any information submitted to the CDFI Fund via ATS for the length of their compliance period, pursuant to their NMTC allocation award. By statute, a QEI must stay invested in a CDE for at least 7-years. Therefore, the record retention associated with ATS data submission will extend beyond 3 years.
8. Solicitation of comments on information collection
Pursuant to the notice and request for comments published in the Federal Register on
November 6, 2006. See 71 FR 65032. The CDFI Fund received no comments.
9. Provision of payment to respondents
No payments or gifts will be made to respondents.
10. Assurance of confidentiality
The CDFI Fund is subject to all Federal regulations with respect to confidentiality of information provided by NMTC Program allocation applicants. No other assurances of confidentiality have been provided.
11. Justification of sensitive questions.
No questions of a sensitive nature are asked in the application.
12. Estimate of the hour burden of information collection.
The total hour burden of this information collection is estimated at 12 hours per respondent annually (estimate of one, hour-long data entry session per month per respondent). The CDFI Fund expects responses from the 170 entities for a total of 2040 annual burden hours for the data collection. Although the number of respondents will increase with each year of the program, the total hour burden per respondent should remain the same.
13. Estimate of total annual cost burden to respondents
There are no cost burdens to respondents to this collection of data. No purchase of equipment or services will need to be made by respondents for this information collection other than as required as a part of customary and usual business practices.
14. Estimate of annualized cost to the Government
The cost to the Government is the CDFI Fund staff and contractor time required to maintain the electronic system, review the data submitted for compliance and evaluation purposes, and collect follow-up information from applicants.
15. Any program changes or adjustments
The 1,248 hour increase in burden hours is primarily due to additional allocates (respondents) from the 2003 and 2005 NMTC Program Allocation rounds. Please note that the hour burden per respondent did not change.
16. Plans for information tabulation and publication
Confidential or proprietary information collected through ATS will not be published.
17. Reasons for not displaying expiration date of OMB approval
Information disseminated post-OMB approval will include the OMB number.
18. Explanation of exceptions to certification statement
Not applicable.
This section is not applicable.
| File Type | application/msword |
| File Title | Supporting Statement for CDFI 002: Bank Enterprise Award Program Application Form |
| Author | user |
| Last Modified By | mccalluma |
| File Modified | 2007-01-03 |
| File Created | 2006-12-28 |