New Markets Tax Credit Program
E2188
The New Markets Tax Credit 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.
Observed surface forms (2)
| Surface form | Occurrences |
|---|---|
| New Markets Tax Credit | 2 |
| Community Renewal Tax Relief Act of 2000 | 1 |
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
community development finance program
ⓘ
federal tax incentive program ⓘ |
| administeredBy |
Community Development Financial Institutions Fund
ⓘ
United States Department of the Treasury ⓘ
surface form:
U.S. Department of the Treasury
|
| alsoKnownAs | NMTC Program ⓘ |
| authorizedBy |
New Markets Tax Credit Program
self-linksurface differs
ⓘ
surface form:
Community Renewal Tax Relief Act of 2000
|
| beneficiaries |
businesses in low-income communities
ⓘ
community development entities ⓘ real estate projects in low-income communities ⓘ |
| benefitsType | federal income tax credit ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| creditPercentage | 39 percent of the qualified equity investment ⓘ |
| creditPeriod | 7 years ⓘ |
| creditSchedule |
5 percent annually for the first 3 years
ⓘ
6 percent annually for the final 4 years ⓘ |
| eligibleIntermediaries | certified community development entities ⓘ |
| eligibleUses |
business financing in low-income communities
ⓘ
community facilities financing ⓘ real estate development in low-income communities ⓘ |
| enactedInYear | 2000 ⓘ |
| focus |
job creation in low-income areas
ⓘ
leveraging private capital ⓘ revitalization of distressed neighborhoods ⓘ |
| fundingSource | federal tax expenditure ⓘ |
| intendedOutcome |
increase access to capital in underserved markets
ⓘ
stimulate economic growth in low-income communities ⓘ |
| investmentHoldingRequirement | 7-year compliance period ⓘ |
| investmentInstrument | qualified equity investment ⓘ |
| levelOfGovernment | federal ⓘ |
| mechanism |
allocates tax credit authority to community development entities
ⓘ
investors receive tax credits in exchange for equity investments ⓘ |
| overseenBy | CDFI Fund NMTC Program Office ⓘ |
| policyArea |
community development
ⓘ
economic development ⓘ tax policy ⓘ |
| primaryGoal |
incentivize private investment in low-income communities
ⓘ
support community development projects ⓘ |
| requires |
allocation application by community development entities
ⓘ
certification of community development entities by CDFI Fund ⓘ investment in qualified active low-income community businesses ⓘ |
| riskIfNoncompliance | recapture of tax credits ⓘ |
| statutoryCitation |
Internal Revenue Code
ⓘ
surface form:
Internal Revenue Code Section 45D
|
| supports |
commercial real estate projects in low-income communities
ⓘ
community service facilities ⓘ mixed-use developments in low-income communities ⓘ operating businesses in low-income communities ⓘ |
| targets |
distressed census tracts
ⓘ
low-income communities ⓘ |
| taxpayerBenefitForm | nonrefundable tax credit ⓘ |
Referenced by (12)
Full triples — surface form annotated when it differs from this entity's canonical label.
subject surface form:
Community Development Entity
this entity surface form:
New Markets Tax Credit
New Markets Tax Credit Program
→
authorizedBy
→
New Markets Tax Credit Program
self-linksurface differs
ⓘ
this entity surface form:
Community Renewal Tax Relief Act of 2000
this entity surface form:
New Markets Tax Credit