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Tax Credits for Investments Boosting Local Community Development

This law introduces a new tax credit for taxpayers investing in qualified Community Development Financial Institutions (CDFIs). The goal is to increase capital access for small businesses and initiatives in investment areas or targeted populations. Consequently, entities in these regions may experience improved access to financial services.
Key points
Tax Incentive: Investors can claim a portion of the amount invested in CDFIs (3% or 4% annually) as a tax credit over a period of up to 20 years.
Increased Funding: More capital will flow to institutions expanding lending and investing activity in target markets.
National Cap: The total annual amount of investments eligible for the credit is limited, starting at $1 billion in 2023.
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Additional Information
Print number: 118_HR_6650
Sponsor: Rep. Thanedar, Shri [D-MI-13]
Process start date: 2023-12-06
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OFFICIAL LEGAL TITLE

Community Development Investment Tax Credit Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6650.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-12-06.

What are the main provisions?

Key points include:

  • Tax Incentive: Investors can claim a portion of the amount invested in CDFIs (3% or 4% annually) as a tax credit over a period of up to 20 years.
  • Increased Funding: More capital will flow to institutions expanding lending and investing activity in target markets.
  • National Cap: The total annual amount of investments eligible for the credit is limited, starting at $1 billion in 2023.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Thanedar, Shri [D-MI-13].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy