About the New Markets Tax Credit Program
The goal of the New Markets Tax Credit (NMTC) Program is to increase investment in low-income areas in order to revitalize economically-distressed communities and develop new opportunities for their residents through employment or access to services.
Since 2003, this innovative public-private partnership has brought together capital market discipline and funding with government support and oversight to provide over $31 billion in flexible financing to a wide variety of businesses, industries, and service providers that would otherwise have limited funding prospects.
The program attracts capital to low-income communities by providing a tax incentive to private investors, who invest in federally-recognized Community Development Entities that have contracted to finance businesses in economically distressed areas.
NMTC Program Partners
- The Community Development Financial Institution (CDFI) Fund of the US Department of Treasury: allocates credit authority and oversees program compliance
- Certified Community Development Entities, or CDEs – like CEI Capital Management: source projects and manage loan servicing and compliance
- The Internal Revenue Service: oversees tax reporting and credit distribution to investors
- NMTC Equity Investors: invest funds in the CDEs for reinvestment into businesses in low-income communities
- Businesses in Low-Income Communities; and
- Lenders (in some cases): may provide additional debt financing to the NMTC structure.
For more information on the Program, visit the CDFI Fund.