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 New Markets Tax Credit (NMTC) program is a federal tax credit program administered by the U.S. Department of Treasury Community Development Financial Institutions (CDFI) Fund that is designed to generate private-sector capital investment in low-income communities.The 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.
NYCEDC facilitates the use of the New Markets Tax Credit program for the financing of projects in low-income communities through NYC Neighborhood Capital Corporation and strategic collaborations with a number of national CDEs. NYCEDC works to identify NMTC-eligible projects as defined by the NMTC program statute and regulations, and the presence of a funding gap.
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.