Announcements

• Electronic Application for 2011 Round of the New Markets Tax Credit Program Now Available

• Proposed Changes Announced to New Markets Tax Credit Program to Promote Greater Investment in Operating Businesses

• 2011 Competition for New Markets Tax Credit Round Opens

• New Markets Tax Credit Named Among Top 25 Programs In The "Innovations In American Government Award" Competition
  • CDFI Fund Press Release
  • Harvard Kennedy School Press Release

• Treasury Announces $3.5 Billion in Awards For Economic Development and Community Revitalization

Overview

The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

Since the NMTC Program’s inception, the CDFI Fund has made 594 awards allocating a total of $29.5 billion in tax credit authority to CDEs through a competitive application process. This $29.5 billion includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone.

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 or low-income persons; and
• maintain accountability to residents of low-income communities through representation on a governing board of or advisory board to the entity.

For more detailed information on the CDE certification process and CDE certification Application materials, please visit the CDE Certification page.

Timeline

Application Materials
2011 NOAA 2011 NMTC Program - Application 2011 NMTC Online Application Instructions 2011 NMTC Program - Application Q&A 2011 NMTC Program - Application Webinar 2011 NMTC Program - Application Webinar Materials
Low-Income Communities and Targeted Populations
CDFI Fund Mapping System (CIMS) Qualifying Census Tracts in Non-Metropolitan Counties Information on Qualifying Census Tracts in Non-Metropolitan Counties (.pdf) List of Qualifying Census Tracts in Non-Metropolitan Counties (.xls) Q&A: Low-Income Communities and Targeted Populations List of Qualifying NMTC Census Tracts Within High Migration Rural Counties List of Qualifying Counties and Eligible Low-Income Communities in the Go Zone Map of Gulf Opportunity Zones Katrina Severely Damaged Census Tracts
Find CDEs with an NMTC Allocation
QEI Issuance Report (July 2011) Searchable Award Database
NMTC Compliance Resources
Certification of Material Events Form Frequently Asked Questions on Material Events NMTC Compliance & Monitoring Frequently Asked Questions (May 2009) New Markets Tax Credit Allocation Agreement Template (2010)
Supplemental Resources
How to Request a Legal Review
Past Awards
2010 NMTC Program Allocatee Profiles 2010 NMTC Program Allocatee States Served 2010 NMTC Program Award Booklet 2010 NMTC Program Award List 2010 NMTC Program Highlights
IRS Materials and Program Regulations
IRS Help Desk For General NMTC Questions IRS New Markets Tax Credit Audit Technique Guide IRS -Rev. Rul. 2010-17: Section 45D- New Markets Tax Credit IRS- Rev. Rul. 2010-16: Section 469-Passive Activity Losses and Credits Limited IRS Proposed Regulations for Targeted Populations (2008) IRS Notice 2006-60 on Targeted Populations IRS - Proposed Amendments to NMTC Program Regulations (Aug 2008) IRS - NMTC Program Income Tax Regulations IRS - Guidance Regarding use of Borrowed Funds to Make Qualified Equity Investments in CDEs IRS - Form 8874 (2003) New Markets Tax Credit Statute
Links to Other Relevant CDFI Fund Webpages
CDE Certification Compliance, Monitoring, and Evaluation Research Reports and Impact Data
Program Materials Archive