New Markets Tax Credit Program

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The New Markets Tax Credit (NMTC) Program was established in 2000 as part of the Community Renewal Tax Relief Act of 2000. The goal of the program is to spur revitalization efforts of low-income and impoverished communities across the United States and Territories. The NMTC Program provides tax credit incentives to investors for investing in communities that are economically distressed or have low-income populations.

The Community Development Financial Institutions (CDFI) Fund in the Department of the Treasury is authorized to allocate up to $19.5 billion in tax credit authority to Community Development Entities (CDE). CDEs apply for tax credits on an annual basis, with the upcoming application round projected to open in December of 2007 and application be due February of 2008.