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Is the New Markets Tax Credit subject to recapture like other credits?

April 26, 2017Credits Markets recapture Subject tax credit

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Is the New Markets Tax Credit subject to recapture like other credits?

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The credit is subject to recapture during the 7-year credit period if the entity invested in ceases to be a CDE, the proceeds of the investment are not used to make Qualified Investments, or the investment in the CDE is redeemed by the CDE. The recapture amount is generally based on tax benefit derived from the credit.