New Market Tax Credits

The New Markets Tax Credit (NMTC) program is operated by the CDFI Fund of the US Treasury Department. Investors receive federal tax credits from a Community Development Entity (CDE) that has received an allocation of NMTC in return for making an investment in the CDE. Substantially all of the investment must be used by the CDE to provide investments in qualified projects located in low-income communities. The investor receives a credit totaling 39 percent of the amount of their total investment over a seven-year period. In each of the first three years of the investment period, the investor receives a credit equal to five percent of their total investment and in each of the final four years of the investment period, the investor receives a credit equal to six percent of their total investment. Investors must keep their investments outstanding for the full seven-year investment period or face harsh recapture penalties from the IRS. 

NCRF has submitted its application for an allocation of NMTC in the 2010 Allocation Round. Allocation awards will likely be announced in the last calendar quarter of 2010.  

If you are interested in receiving a NMTC investment in your project or purchasing a NMTC from NCRF, please contact us.