How does an investor get an allocation of the credit?
The investor does not receive the credit directly from the Federal Government. Instead, CDEs that are eligible for the credit will be selected by the U. S. Treasury Department. The Treasury Department can allocate credits to qualified CDEs of $1 billion for 2001, $1.5 billion each year for 2002-2003, $2 billion each year for 2004-2005, and $3.5 billion each year for 2006-2007. The CDE will have up to 5 years to allocate the credit to specific investments. The credit is available when the investor makes an equity contribution to the qualified CDE.
