Detailed NMTC Coalition Response to Yesterdays Reports As we reported yesterday, Senator Coburn issued a highly critical report on the NMTC, "Big Banks Claim Millions of Dollars in Tax Credits Intended For Poor Communities". GAO also released a report, "New Markets Tax Credit: Better Controls and Data Are Needed to Ensure Effectiveness".
Download the Coburn report Download the GAO report
While Coburn's report is mostly a rehash of his previous attacks on projects that he dislikes, the GAO report contains several new criticisms relating to investor returns and the combining of the NMTC with other public subsidies. The Coalition responded yesterday with a press release as well as a more lengthy paper that addresses the flawed assertions in both reports:
Read the Coalition's detailed response to the Coburn and GAO reports Read the Coalition's press release
Neither report paints an accurate picture of the NMTC. For this reason. the Coalition is in touch Administration officials - at the CDFI Fund, Treasury and the White House - as well as Members of Congress. We have made our comments available and are following up with individual briefings. We are also employing a complimentary media strategy, which included several weeks of work in advance of the GAO report release to promote the positive impact of the NMTC. Those efforts appear to have paid off with some of the coverage from the reports mentioning the release of the special rural report on the NMTC that we distributed on July 15th, as well as working with Coalition members to promote their events, including the opening of a supermarket on July 31st in a Baltimore that was financed by TRF, City First Bank and investor JP Morgan Chase. We will continue to work with members to identify opportunities for positive media coverage and encourage you all to visit the Advocacy Toolkit on the website or contact us for assistance. With much of Washington gone on summer vacation, it is hard to gauge the reaction to these reports. Later this month, as people filter back to town, we will be better able to assess the damage, if any. We will keep all members informed and plot our strategy accordingly.
