New Markets Tax Credit Program

New Markets Tax Credits (NMTCs) are federal tax credits designed to leverage private investment in low-income communities. The NMTC program is administered by the Community Development Financial Institutions Fund (CDFI Fund) at the U.S. Department of the Treasury .The authority to allocate these tax credits awarded to qualified Community Development Entities (CDEs) through a national competition. To date, $40 billion of NMTCs have been awarded to CDEs over seven rounds of allocations.

Eligible investments may include the activities listed below, which must be located in low-income communities:

  •  Loans and investments in operating businesses;
  •  Development of commercial, industrial and retail real estate;
  •  Mixed-use projects where commercial income exceeds 20% of the gross income of the project;

  •  Development of for-sale housing.