NYC Neighborhood Capital Corporation (NYCNCC) is a federally certified Community Development Entity (CDE) that utilizes the New Markets Tax Credit (NMTC) program to make low-interest and forgivable loans to community development projects in low-income communities in New York City. Typical projects include schools, health care centers, community facilities, and grocery stores.
The New Markets Tax Credit (NMTC) program is a federal tax credit program administered by the US Department of Treasury Community Development Financial Institutions (CDFI) Fund that is designed to generate private-sector capital investment in low-income communities.
The NMTC program permits taxpaying investors to receive a credit against federal income tax liability in exchange for making qualified equity investments (QEI) 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.
In addition to directly financing projects through capital from NYCNCC, NYCEDC collaborates with a number of national CDEs to identify and help channel capital to qualified low-income community development projects in New York City.