The New Markets Tax Credit Program (NMTC) was established by Congress
in 2000 to spur new or increased investments into operating businesses and real
estate projects located in low-income communities. The NMTC Program attracts
investment capital to low-income communities by permitting individual and
corporate investors to receive a tax credit against their Federal income tax
return in exchange for making equity investments in specialized financial
institutions called Community Development Entities (CDEs). The credit totals 39
percent of the original investment amount and is claimed over a period of seven
years (five percent for each of the first three years, and six percent for each
of the remaining four years). The investment in the CDE cannot be redeemed
before the end of the seven-year period.
Since the NMTC Program’s inception, the CDFI Fund has made 664 awards
allocating a total of $33 billion in tax credit authority to CDEs through a
competitive application process. This $33 billion includes $3 billion in
Recovery Act Awards and $1 billion of special allocation authority to be used
for the recovery and redevelopment of the Gulf Opportunity Zone. Contact us today to see how the NMTC program could be the right tool to finance your growing business.
"We make a living with what we get, but we make a life with what we give." Winston Churchill
|