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What is the New Markets Tax Credit?

The New Markets Tax Credit (NMTC) attracts private investment into low-income communities by giving investors a 39% federal tax credit over seven years on equity invested through a certified Community Development Entity (CDE). It typically backs larger projects of $5M or more.

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What to know

  • 39% credit is claimed over 7 years (5% in years 1-3, 6% in years 4-7).
  • Investment must flow through a certified CDE, not directly to the business.
  • The project must sit in an NMTC-eligible low-income census tract — check your address.
  • Can combine with historic and Opportunity Zone credits; the program was made permanent in 2025.

Related programs

New Markets Tax CreditsFederal Opportunity Zones

Sources

This is a discovery tool, not legal, tax, or eligibility advice. Confirm current requirements with the administering agency before applying, certifying, or relying on any program listed here.

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