New Markets Tax Credits
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.
