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Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers.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.
For more information, please see our
NMTC Program Fact Sheet (English /
Español). A detailed overview of the NMTC Program, including information on eligible activities, can also be found in the
Introduction to the NMTC Program presentation.
IRS Materials and Reference Documents
Eligibility
NMTC Program applicants must be certified as CDEs by the CDFI Fund. For more information on CDE Certification, please see our
CDE Certification page
CDE Certification is intended for community development financing intermediaries. Businesses seeking NMTC-enhanced financing should not apply for CDE Certification, but should instead contact CDEs directly. To locate a CDE serving your area, please visit our
NMTC Awardee States Served map.
Download our Notice of Allocation Availability for information on eligibility.
