WASHINGTON, DC—The US Treasury Department announced the 2014 round of New Market Tax Credits on Monday, awarding more than $3.5 billion in tax credit allocation authority to 76 organizations across the country.

This program is viewed as a credible -- if not cumbersome – form of alternative finance for the real estate community. However the allocation of credits devoted to real estate projects began to slide in the 2013 round – a trend that continues in this round, says Michael Sanders, partner at Blank Rome and lead partner of the firm's Washington D.C. tax group.

"It is notable that approximately 74% of the NMTC investment proceeds will be directed to finance and support loans to -- or investments in -- operating businesses," he tells GlobeSt.com. Only 26% will be used to finance and support real estate projects. "Many of the deals in the past in qualified census tracts have been real estate oriented," he says.

The program, established in 2000, is designed to facilitate investment in projects located in low-income urban and rural communities that the private sector otherwise might pass by. Under it, individual and corporate taxpayers receive a non-refundable tax credit that is applied against federal income taxes for making equity investments in Community Development Entities. The tax credit totals 39% of the cost of the investment and is claimed over a seven-year period.

Monday's announcement, in many respects, was a continuation of the status quo for the program, says Curtis B. Hunter, partner in the Business, Finance and Tax team at law firm Berger Singerman.

"Since its inception in 2000, the highest award allocated was $5 billion in 2008 and 2009," he tells GlobeSt.com. "Starting in 2010, the award has remained constant between $3.5 billion and $3.6 billion, as the federal government continues to focus on economic recovery in distressed areas."

The competitive application process is also consistent, with the 2015 allocations being awarded to 76 CDEs, or Community Development Entities, with tax credit allocation authority out of 263 applicants.

Another way to look at the $3.5 billion dollar allocation is to consider that the credit had technically expired in 2014, says Daniel Madrid of Fox Rothschild LLP. News of the new allocation was met with relief by many that use this credit, he tells GlobeSt.com. Meanwhile, "the program remains in a state of uncertainty despite the clear success it has demonstrated in bringing private investment to the communities that need it most," he says. "In large part, this is due to the program's complexity and outlier stories of alleged abuse, more so with state programs that mimic the Federal New Markets Tax Credit program."

If proposed legislation to permanently extend the New Markets Tax Credit is passed into law, significant change could be introduced, he says. "The numerous success stories are testament to the programs effectiveness, and it would be a mistake to allow it to fade into obsolescence."

The breakdown of 2014's NMTC allocation includes $2.53 billion devoted to loans or investments in businesses in low-income communities. Approximately, $908 million will be allocated to real estate projects. Some $1.9 billion is to be invested in major urban areas, and $813 million is to be invested in minor urban areas. Approximately $721 million will be invested in rural areas.