Allocation Materials

The CDFI Fund within the Department of Treasury awards NMTC allocation.

The CDFI Fund within the Department of Treasury awards NMTC allocation.

The New Markets Tax Credit Program awards NMTC allocation authority through an annual competitive application.

Applications must be made by a Community Development Entity (CDE). All types of organizations, including not for profit organizations, government entities and for profit organizations, may create a CDE through which to apply for an NMTC Allocation. The process is not competitive, and the application is open year round.

Information on creating a CDE can be found here.

Once a year the CDFI Fund opens the allocation round through a Notice of Allocation Authority in the Federal Register, together with providing access through the Fund’s website, to its online NMTC application.

The NMTC Application contains four scored sections of 25 points each, plus the opportunity for up to an additional 10 “priority” points for organizations that have a prior track record of community development investment and/or who agree to invest in unrelated entities. The four sections cover an applicant’s proposed Business Strategy, Community Impact, Management, and Capitalization Strategy. The CDFI Fund generally receives requests for allocations that exceed its authority, by many multiples. Less than one third of applicants receive an allocation.

The 2012 Round of Allocation Awards will be announced this April.

Questions about the allocation process? Contact the CDFI Fund Help Desk at (202) 653-0421 and then option 3.