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Tax Credit for Investing in Community Development Financial Institutions

This bill creates a new tax credit for taxpayers holding qualified investments in Community Development Financial Institutions (CDFIs). The aim is to encourage capital investment in institutions serving target markets. The bill establishes credit allowance rules, monetary limitations, and definitions for new entities such as Community Development Equity Funds.
Key points
Taxpayers receive a tax credit over 20 years (3% annually for the first 10 years, 4% for the next 10 years) for qualified investments in CDFIs.
For investments without a fixed term or duration, the applicable percentage rate is increased by one percentage point.
An annual national limitation on eligible investments is set at $1 billion for 2023, $1.5 billion for 2024, and $2 billion thereafter (with inflation adjustments after 2025).
The act defines new categories, such as Community Development Equity Funds and Emerging CDFIs.
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Additional Information
Print number: 118_S_2963
Sponsor: Sen. Warner, Mark R. [D-VA]
Process start date: 2023-09-28
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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_S_2963.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-09-28.

What are the main provisions?

Key points include:

  • Taxpayers receive a tax credit over 20 years (3% annually for the first 10 years, 4% for the next 10 years) for qualified investments in CDFIs.
  • For investments without a fixed term or duration, the applicable percentage rate is increased by one percentage point.
  • An annual national limitation on eligible investments is set at $1 billion for 2023, $1.5 billion for 2024, and $2 billion thereafter (with inflation adjustments after 2025).
  • The act defines new categories, such as Community Development Equity Funds and Emerging CDFIs.
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 Sen. Warner, Mark R. [D-VA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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 Public Investments