NMTC Program

E10940

The NMTC Program is a U.S. federal initiative that incentivizes private investment in low-income communities by offering tax credits to investors in qualified community development projects.

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Statements (47)

Predicate Object
instanceOf community development finance program
federal tax credit program
administeredBy Community Development Financial Institutions Fund
United States Department of the Treasury
surface form: U.S. Department of the Treasury
appliesTo federal income tax liability
benefits federal income tax credits to investors
country United States of America
surface form: United States
createdBy United States Congress
surface form: U.S. Congress
creditSchedule 5 percent of the investment in each of the first 3 years
6 percent of the investment in each of the final 4 years
eligibleInvestor individual investors
private corporations
eligibleProject qualified active low-income community businesses
focusesOn business financing in low-income communities
community facilities in low-income communities
real estate projects in low-income communities
fullName New Markets Tax Credit Program
fundingSource federal government
geographicScope national
intendedOutcome increased access to capital in underserved markets
job creation in low-income communities
revitalization of distressed neighborhoods
legalAuthority Community Renewal Tax Relief Act of 2000
mechanism allocation of tax credit authority to community development entities
oversightBy Internal Revenue Service
policyType place-based economic development incentive
primaryBeneficiaries community development entities
low-income communities
private investors
programType public-private partnership
purpose incentivize private investment in low-income communities
stimulate economic growth in distressed areas
support community development projects
relatedTo Community Development Financial Institutions Fund programs
Low-Income Housing Tax Credit
Opportunity Zones incentive
requires allocation application by Community Development Entities
investment through certified Community Development Entities
sector community development finance
tax policy
startYear 2000
supports qualified equity investments
qualified low-income community investments
targetArea distressed census tracts
low-income communities
taxCreditPeriod 7 years
taxCreditRate 39 percent of the qualified equity investment

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.