New Markets Tax Credit
Bringing Private Investment to Low-income Communities
Federal and state New Markets Tax Credit (NMTC) programs spur revitalization efforts in low-income and distressed communities by providing tax credit incentives to investors. Without the NMTC, many projects in low-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 developers, the NMTC effectively reduces the borrowing or financing costs and can bridge financing gaps.
NMTC and Finance Fund
As a certified nonprofit 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 commercial real estate projects, operating businesses and nonprofit organizations located in low-income rural and urban areas throughout Ohio. Projects meet identified 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. Click here for more information about the NMTC Program.
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 nine federal NMTC allocation awards totaling $295 million. Since the Ohio NMTC program’s inception, Finance Fund has received a total of $35.9 million in NMTC credit allocation authority.
Through these programs, Finance Fund has leveraged $897.9 million on an investment of $275.6 million for 62 projects providing 548 housing units, creating 12,426 direct jobs, serving 634 children and providing services to 39,830 patients.
Find Out More
new markets tax credit success stories