New Markets Tax Credits
New Markets Tax Credits (NMTC) support investments that create jobs and provide services in economically disadvantaged areas. Obtaining the tax credits is a competitive process through a Community Development Entity (CDE), like the Heartland Regional Investment Fund (HRIF). In addition, CDEs receive authority by the U.S. government to allocate the tax credits.
NMTC can subsidize up to 20 percent of a project’s capital needs. The tax credits can be used to fund commercial, industrial, community and mixed-use projects within qualifying census tracts. The U.S. Census determines these tracts by income and poverty data from the U.S. Census.