New Markets Tax Credits Program
The New Markets Tax Credit (NMTC) program is a federal program administered by the U.S. Department of Treasury Community Development Financial Institutions (CDFI) Fund.
The NMTC program permits taxpaying investors to receive a credit against their federal income tax liability for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments to projects and businesses in low-income communities.
NYCEDC facilitates the use of NMTCs for the financing of real estate projects in New York City through a strategic collaboration with United Fund Advisors (UFA) and its affiliate CDE, National Community Fund I. NYCEDC works with UFA to identify NMTC-eligible projects based on mutually agreed upon selection criteria, including projects located in a highly distressed low-income community, as defined by the NMTC program statute and regulations, and the presence of a funding gap. Once a project is selected, UFA structures the financing and leads the transaction closing.
Eligibility
Developers of projects requiring acquisition, construction, and major rehabilitation of commercial, industrial, community facility, and mixed-use residential developments in low-income communities are eligible for the NMTC program. NMTC program provides financing to eligible projects, typically in the form of loans or equity investments.
NMTC Conference
The 7th Annual NMTC Conference took place on February 2nd, 2012. The event was an overwhelming sucess with over 500 registrants.
