ABOUT THE PROGRAM
- The New Markets Tax Credit program (NMTC) is a cost-effective way to create jobs and drive investment in communities with high rates of poverty and unemployment.
- Enacted in 2000, the program uses federal tax credits equaling 39 percent of the investment allocated over a seven-year period. These investments are made to spur community and economic revitalization.
- The NMTC statute requires that investments be located in census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median.
- Today, $45 billion of capital is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.
POSITIVE COMMUNITY IMPACT
- All NMTC investments target economically-challenged communities.
- The NMTC program has helped support the development of more than 92-million square feet of manufacturing, retail, and community space.
- Examples of projects and businesses financed through New Markets include an airplane parts manufacturer, bakeries, community health centers, high-tech business incubators, a soup kitchen, supermarkets, and worker training facilities.
- As a result of NMTCs, hundreds of thousands of construction and full-time jobs have been created, and financing provided for small and medium-sized businesses in hard-hit urban and rural areas.
EFFICIENT PRIVATE-PUBLIC PARTNERSHIP
- Using current Recovery Act standards, this program has helped create or retain an estimated 70,000 jobs in 2010.
- The NMTC program generated $8 of private investment for every $1 of federal investment.
- NMTC investments of $21 billion have generated a total of $45 billion in capital that has been invested in some of the nation’s most underserved communities.
- All investments meet or exceed federal requirements established for the NMTC program.