New Markets Tax Credits

Edwards+Strunk is your critical resource for assistance in securing capital funding through the federal government’s New Markets Tax Credit (NMTC) program. The NMTC program is a federal economic development program administered by the U.S. Dept. of the Treasury. Since its inception in 2001, NMTC has targeted Severely Distressed Census Tracts with federal tax credits to spur capital development, to create jobs, and to answer significant community needs in underserved areas.

The total amount of federal tax credits allocated by the program since its inception now

exceeds $57.0 billion. The most recent allocation by the U.S. Treasury (23 May 2019) totals

$3.5 billion in tax credits. It is estimated that for every $1 in federal funding the program has created $8 in economic impact. The federal government allocates the tax credits on an annual basis to qualifying Community Development Entities (CDEs) who in turn make allocations to individual capital projects. The latest round was distributed to a total of 73 CDEs nationally.