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Department of the Treasury - New Markets Tax Credit Program

Agency/Department
Federal Agency/Bureau
Community Development Financial Institutions Fund
Program Name
New Markets Tax Credit Program
Authorizing Legislation

Community Renewal and Tax Relief Act of 2000

Program Overview

Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers. The New Market Tax Credit Program (NMTC Program) aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies. The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years.

CFDA

Not Applicable

Type of Funding

Tax Credit

Link to application site, NOFO, FOA, or Grants.gov (if different from program website above)

Not Applicable

Notice of Funding Opportunity (NOFO) or Federal Opportunity Announcement (FOA) Type

Not Applicable

Important Dates (if applicable)

Not Applicable

FY2023 Appropriations Amount

Total Amount: $5,000,000,000 in tax credit authority


Amount Available Towards Broadband (if specified): Not specified

Matching Requirement

No

Complementary Federal Funding Option

Not Applicable

Broadband-related Program Purpose/Eligible Expenditures
Speed/Technical Requirement for Broadband Infrastructure

Not Applicable

Eligible Recipients
Criteria for Eligible Recipients

Only certified CDEs are eligible to receive an allocation of New Markets Tax Credits. Certified CDEs must meet the following requirements: be a legal entity at the time of application; have a primary mission of servicing low-income communities; and, maintain accountability to residents of its targeted low-income communities.

Grant Beneficiaries (if different from eligible recipients)

CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on better rates and terms and more flexible features than the market

Programmatic Resources

Not Applicable

Reporting Requirements

Not Applicable

Publicly-available programmatic data

Not Applicable

Contact Information

NMTC Help Desk (202) 653-0421, cdfihelp@cdfi.treas.gov

Additional Information

Not Applicable

Updated

March 2023

Funding Guide