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About the New Markets Tax Credit Program: Benefits

For many low-income cities and towns, attracting traditional financing for business development or expansion is one of the greatest hurdles to revitalizing their communities. Through the incentive provided by the NMTC Program, traditional financing sources are more willing to place their dollars in these under-invested areas, allowing new businesses to develop and existing business to grow, which in turn employ local residents, purchase goods and services, and expand the tax base.

The flexibility of the NMTC Program also means it can serve as a valuable source of funding for service providers, such as health clinics and educational non-profits, to expand their facilities and impact within the communities they serve.

The involvement of certified Community Development Entities provides additional accountability to ensure that the NMTC funding goes to projects that can provide measurable, tangible benefits to economically distressed communities.

For more details on transaction structuring and financial benefits, see How Does the NMTC Program Work?

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