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, $50 billion of capital is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.

POSITIVE COMMUNITY IMPACT

• NMTC investments target economically-challenged communities.  Over 90 percent of NMTC activity is in areas with distress levels in excess of government requirements for the program.
• The NMTC program has helped support the development of more than 74-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 500,000 jobs. The cost-effective nature of the NMTC makes the federal government’s investment per job created $12,000 compared to other programs that have been estimated to cost an average $92,000.
• The NMTC program generated $12 of private investment for every $1 of federal investment.
• NMTC investments of $15.5 billion have generated a total of $50 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.

Click here to download a printable version of the Fact Sheet

The Coalition serves its members in the following capacities:

• Worked with the Clinton Administration to design the Credit and lobbied Congress for its enactment;
• Collaborated with the Bush Administration to launch the program including the original rules, regulations and application;
• Build bipartisan Congressional support for the Credit as an efficient market-based incentive for community revitalization;
• Lobbied successfully for four extensions of NMTC totaling $17 billion in additional credit authority;
• Conducted annual surveys of Community Development Entities and published 7 annual NMTC Progress Reports, state profiles of NMTC projects (50 Projects – 50 States), and reports on the overall effective ness of the credit (10th Anniversary Report);
• Convened two annual Washington conferences where Coalition members have a chance to brief policymakers on the NMTC.
• Responded to Treasury and IRS’s requests for comments and technical feedback on the Credit; and
• Served as the eyes and ears of the NMTC industry in Washington, alerting members to the latest developments with regular emails via NMTC Bulletins.

The Coalition also manages the Investor Advisory Committee (IAC), co-chaired by Gary Perlow and Mike Novogradac, as a venue for investors to discuss NMTC issues and encourage ongoing policy discussions between CDEs and investors.

More:

• Join the coalition
• Find out more about the New Markets Tax Credit
• Get informed with the latest news

Recent Letters:

• 2012 NMTC Extension Sign-on Letter ***New*** 
• 2011 NMTC Extension Sign-on Letter 
• 2011 Broad Extender Letter
• 2011 Business Sign-on Letter in Support of NMTC