New Markets Tax Credit

The New Markets Tax Credits (NMTC) program is aimed at stimulating private investment in low-income communities – a first of its kind tax credit to investors who make qualified equity investments in privately managed investment vehicles. By making an equity investment in an eligible “community development entity” (CDE), investors can receive tax credits worth more than 30 percent of the amount invested.

• As a CDE Prairieland EDC acts as a lender or intermediary
• Must operate in Qualified Low Income Census Tracts with Qualified Active Low-Income Businesses
• Tax credit allocation vehicle – Community Reinvestment Fund
• Loans made through existing programs
• Use will be limited to lending not equity
• Many unanswered questions