Awards will Spur Economic and Community Development in Low-Income Urban, Rural and Tribal Communities Nationwide
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today announced $5 billion in New Markets Tax Credits that will spur investment and economic growth in low-income urban and rural communities nationwide. A total of 104 Community Development Entities (CDEs) were awarded tax credit allocations, made through the calendar year (CY) 2023 round of the New Markets Tax Credit Program (NMTC Program).
“Today, we announce the 20th round of New Markets Tax Credit allocations, which has attracted billions in private capital into businesses and projects in low-income communities nationwide as they continue to recover from the impacts of the pandemic,” said CDFI Fund Director Pravina Raghavan. “These investments have spurred job creation, the rehabilitation of commercial corridors, and the development of community facilities like health clinics, charter schools, and food banks, all examples of how New Markets Tax Credit investments are vitally important for low-income urban, rural, and Tribal communities across the country.”
The 104 CDEs receiving awards today were selected from a pool of 196 applicants that requested an aggregate total of $14.7 billion in tax credit allocation authority. The award recipients are headquartered in 35 different states, Puerto Rico, and the District of Columbia. Over 20% of the investments will be made in rural communities. It is estimated that these award recipients will make nearly $1.2 billion in New Markets Tax Credit investments in non-metropolitan counties.
Today’s announcement brings the total amount awarded through the NMTC Program to more than $81 billion. Historically, NMTC Program awards have generated $8 of private investment for every $1 invested by the federal government. Through the end of fiscal year 2023, NMTC Program award recipients deployed more than $63.6 billion in investments in low-income communities and businesses; with impacts such as the creation or retention of more than 894,000 jobs, and the construction or rehabilitation of nearly 259.5 million square feet of commercial real estate.
2023 NMTC Program Award Resources
- Award Book: The list of awards, along with other facts and statistics about these awards
- Review Process: Learn how the CDFI Fund evaluates Allocation Applications
About the New Markets Tax Credit Program
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. Since the inception of the NMTC Program, the CDFI Fund has completed 20 allocation rounds and has made 1,667 awards totaling $81 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.
To learn more about the New Markets Tax Credit Program, please visit www.cdfifund.gov/nmtc