New Markets Tax Credit
Bringing Private Investment to Low-and Moderate-Income Communities
Federal and state New Markets Tax Credit (NMTC) programs spur revitalization efforts in low-and moderate-income and distressed communities by providing tax credit incentives to private investors. Without the NMTC, many projects in low-and moderate-income communities would not be possible.
- For investors, the NMTC helps mitigate financing risk by providing a 39% federal income tax credit over a seven-year period on the amount of their investment.
- For communities, NMTC projects serve as economic catalysts that generate jobs, attract other investment to the area and provide needed goods and services to the community.
- For operating businesses, non-profit organizations, real estate, and developers, the NMTC effectively reduces the borrowing or financing costs and can bridge financing gaps.
NMTC and Finance Fund
As a certified non-profit Community Development Entity (CDE), Finance Fund acts as a financial intermediary between investors and eligible NMTC projects. Our job is to identify the most impactful projects possible based on our first-hand knowledge of the needs of local communities.
Finance Fund awards NMTC allocation for a broad range of businesses and projects located in highly distressed rural and urban areas throughout Ohio. Projects must meet identified community-specific needs including job creation and increased access to healthy foods, community facilities, health and wellness centers, education and manufacturing. Most NMTC transactions are highly complex and involve a wide range of participants all united by a common vision.
NMTC Outcomes Report
Finance Fund participates in competitive application processes to receive federal and state NMTC allocation awards from the US Department of Treasury’s CDFI Fund and Ohio Development Services Agency respectively. Since 2004, Finance Fund has received ten federal NMTC allocation awards totaling $360 million. Since the Ohio NMTC program’s inception, Finance Fund has received state NMTC allocation award totaling $43.5 million.
Through these programs, Finance Fund has leveraged $1.19 billion on an investment of $341.2 million for 72 projects providing 552 housing units, creating 15,701 direct jobs, serving 722 children and providing services to 150,830 patients.
Find Out More
If you would like to know more about investing or participating in a NMTC project, please contact Finance Fund EVP, General Counsel, Andrew Swary at aswary@financefund.org.
