1. Short title This Act may be cited as the Community Development Investment Tax Credit Act of 2023 . 2. Community development financial institution investment tax credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45BB. Community development financial institution investment tax credit (a) Allowance of credit (1) In general For purposes of section 38, in the case of a taxpayer who holds a qualified CDFI investment on a credit allowance date of such investment which occurs during the taxable year, the CDFI investment credit determined under this section for such taxable year is an amount equal to the applicable percentage of the amount paid to the qualified community development financial institution for such investment at its original issue. (2) Applicable percentage For purposes of paragraph (1)— (A) In general The applicable percentage is— (i) 3 percent with respect to the first 10 credit allowance dates, and (ii) 4 percent with respect to the 10 credit allowance dates following the last credit allowance date to which clause (i) applies. (B) Increased amount for certain investments In the case of a qualified CDFI investment which does not have a fixed term or duration, the applicable percentage for any credit allowance date shall be increased by one percentage point. (3) Credit allowance date (A) In general For purposes of paragraph (1), the term credit allowance date means, with respect to any qualified CDFI investment— (i) the date which is one year after the date on which such investment is initially made, and (ii) each of the 19 anniversary dates of such date thereafter. (B) Limitation Notwithstanding subparagraph (A), a date shall not be treated as a credit allowance date with respect to any qualified CDFI investment if such date occurs after any date on which— (i) the financial institution in which such CDFI investment is made ceases to be a qualified community development financial