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Introduction

The 2020 New Markets Tax Credit (NMTC) Progress Report was prepared for the NMTC Coalition, a national membership organization of Community Development Entities (CDEs) and investors organized to advocate on behalf of the NMTC. Every year since 2005, the NMTC Coalition has surveyed CDEs on their work delivering billions of dollars to businesses, creating jobs, and rejuvenating the parts of the country that have been left behind. Our annual NMTC Progress Report presents the findings of the CDE survey and provides policymakers and practitioners with the latest trends and successes of the NMTC.

More than CDEs participated in the survey, and their data was supplemented by several other robust data sources along with our own extensive research on NMTC project impacts.

The 2019 survey findings show that program participants – from investors to community development organizations to the CDFI Fund – continue to improve and refine the program’s efficiency and impact in low-income communities. When Congress enacted the NMTC, their intent was to deliver more private-sector investment to low-income communities. Two decades later, the NMTC is no longer simply a tool for delivering investment. The program has become one of the federal government’s most effective tools for job creation and economic stabilization. It expands access to healthcare, education, and social services for millions of Americans each year. And it has unleashed an unprecedented deluge of investment in communities struggling with poverty for two generations.

As this paper goes to press, the unemployment rate just reached 15 percent. Now more than ever, policymakers need proven solutions like the NMTC.

What’s New

This year’s report includes an insert commemorating the 20th Anniversary of the NMTC. We have also set up an interactive online tool-kit with maps, graphics, and data on the nearly 6,400 projects financed by the NMTC since 2000.

  • Analysis of more than 17,000 transaction-level records from a Department of Treasury Freedom of Information Act (FOIA) request.
  • Analysis of the NMTC’s role in rejuvenating vacant, abandoned, and environmentally contaminated buildings.
  • A deep dive into how CDEs find projects.
  • Investment trends and commutative statistics.

A Word About Our Methodology

As was the case in past reports, the 2020 report combines multiple data sources.

The primary source is survey data from 65 CDEs. We supplement that data with extensive online research on projects by every CDE with NMTC allocation available in 2019. We also integrated data from the Office of the Comptroller of Currency’s National Bank Public Welfare Investment Authority, as well as the Department of Treasury FOIA referenced above.

2020-progress-report

Urban Community School

In Cleveland, OH, the NMTC financed the Urban Community School, a 17,400 sq. ft. early childhood and parent development center, a 32,650 sq. ft. federally qualified health center with a 115 sq. ft. food bank and a 10,000 sq. ft. community facility for Urban Squash Cleveland which will provide school mentoring, meals and counseling.