The Top Ten Things You Should Know about the New Markets Tax Credit
- Between 2003 and 2011, investments in NMTC businesses totaled $55 billion, of which 50% was generated from sources other than NMTC direct investments;
- Between 2003 and 2011, NMTC investments generated 350,000 jobs;
- Between 2003 and 2011, NMTC investments generated over 100 million square feet of manufacturing, retail, and community space in low income communities;
- Between 2003 and 2011, the NMTC cost the federal government about $7 billion in lost revenue to generate $55 billion in investment in NMTC businesses – a leverage of approximately 8 to 1;
- 100 percent of all NMTC investments were made in low income communities with poverty rates of at least 20% or median incomes at or below 80% of the area median;
- 72 percent of all NMTC investments were made in communities with severe economic distress- poverty rates of at least 30%, incomes at or below 60% the area median, and unemployment rates 1.5 times the national average.
- In 2011 alone, investments in NMTC businesses totaled $10.5 billion, of which 50% was generated from sources other than NMTC direct investments;
- In 2011 NMTC investments created over 70,000 jobs – all benefiting low income communities;
- According to a GAO study (2007), 88% of NMTC investors would not have considered investing in a project without the NMTC; and
- In 2012, over 300 CDEs applied for $23 billion in NMTC allocations. In April 2013, the CDFI Fund awarded $3.5 billion in NMTC authority to 85 CDEs.
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