New Markets Tax Credit (NMTC) Program
The New Markets Tax Credit (NMTC) Program provides tax incentives for investments in business or economic development projects in distressed rural or urban counties, including capital investments in healthcare facilities.
The NMTC Program permits any taxpayer to receive a credit against federal income taxes for making an investment in designated Community Development Entities (CDEs). A CDE then invests the capital in a low-income community. The tax credit is equal to 39% of the cost of the initial investment and is claimed over 7 years.
Examples of NMTC funded projects have included:
- Rural pharmacy retail stores
- Supermarkets that operate in severely distressed rural areas
- Building or expanding healthcare facilities that meet the needs of rural communities
- Creating affordable office rental space for human service organizations
- Affordable housing development
Organizations that are not CDEs, but are interested in seeking NMTC enhanced capital financing may search for active CDEs and Certified Community Development Institutions (CDFIs) with NMTC allocations.
An organization wishing to receive awards under the NMTC Program must be certified as a CDE by the fund.
To qualify as a CDE, an organization must:
- Be a domestic corporation or partnership at the time of the certification application
- Demonstrate a primary a mission of serving, or providing investment capital for, low-income communities
- Maintain accountability to residents of low-income communities
Estimated ceiling per allocatee:
Total allocation authority: $3,500,000,000
For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RHIhub does not take part in application processes or monitor application status.