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New Markets Tax Credit (NMTC) Program

Link
View Program Website
Sponsors
Community Development Financial Institutions Fund, U.S. Department of Treasury
Deadlines
Jan 29, 2025
Contact

cdfihelp@cdfi.treas.gov
202.653.0421

Purpose

The New Markets Tax Credit (NMTC) Program provides tax incentives for investments in business and economic development projects in distressed rural and 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.

Program fact sheet

Eligibility

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
For more detailed information on the CDE certification process and CDE certification application materials, visit the CDFI Fund's CDE Certification page.
Geographic coverage
Nationwide
Amount of funding

Estimated ceiling per allocatee: $120,000,000
Total allocation authority: $10,000,000,000

Application process

Step-by-step application instructions are available on the program website.

If the applicant has not been certified as a CDE by the CDFI Fund, a CDE Certification application must be submitted by December 3, 2024.

Applicant Q&A webinar
December 17, 2024
2:00 - 3:00 p.m. Eastern
Webinar ID: 161 943 1849

Webinar recordings:

Tagged as
Capital funding · Clinics · Community and economic development · Healthcare facilities · Hospitals · Housing and homelessness · Human services

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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.