New Markets Tax Credits (NMTC) mapping tool
Look at every opportunity to finance projects by evaluating their eligibility for tax credit financing through the New Markets Tax Credit (NMTC) and Low-Income Housing Tax Credit (LIHTC) Programs.
New Markets Tax Credits (NMTC) mapping tool
The New Markets Tax Credit (NMTC) program provides tax credits for investment into operating businesses and development projects located in qualifying communities by certified Community Development Entities (CDEs).
As of Sept. 1, 2024, certified CDEs must use 2016-2020 American Community Survey (ACS) data applied to the 2020 census tracts to identify CDE eligible census tracts in the 50 states, District of Columbia and Puerto Rico.
Explore our NMTC mapping tool below to look at every opportunity to finance projects by evaluating their eligibility for tax credit financing through the program. 2016-2020 ACS data and “deep distress” layer now available!
Disclaimer: The data presented in this map are provided as a reference and the validity cannot be guaranteed. The CDFI Fund is the authority of this data figure and for NMTC eligibility.
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History of New Markets Tax Credits
The New Markets Tax Credit (NMTC) program was created as part of the Community Renewal Tax Relief Act of 2000. Its main objective is to encourage investment in low-income and underserved communities throughout the United States. By offering tax credits to investors who make equity investments in certified Community Development Entities (CDEs), the program aims to attract private capital to these areas. These CDEs then invest in projects that drive economic growth and job creation in distressed communities.
The idea for the NMTC program originated in the late 1990s, motivated by the need to rejuvenate economically disadvantaged areas through business-focused solutions. Prominent foundations and think tanks supported the development of mechanisms to stimulate private sector investment in these communities. This concept gained momentum, leading to the official launch of the NMTC program.
Since its launch, the NMTC program has provided tax credits amounting to 39% of the total investment, spread over seven years. This incentive has been effective in attracting private investment for community development projects. The program is managed by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, which allocates NMTCs to CDEs through a competitive application process.
Over time, the NMTC program has been instrumental in funding projects that generate jobs, enhance access to goods and services, and promote economic growth in low-income areas. Its success is reflected in the numerous stories of revitalized communities and improved living conditions for residents.
Our services
Explore our servicesEnhance your project’s capital stack with the expertise of Baker Tilly’s NMTC consulting team. Whether your project involves new construction, expansion, acquisition, rehabilitation or adding new equipment, our team can craft a strategy to maximize NMTC allocation. We work with you to efficiently structure and close NMTC financing, ensuring the highest net economic benefits for your impactful project.
Our recognized expertise and proven track record in the NMTC and tax credit industry include:
- NMTC project consulting
- CDE and NMTC loan servicing administration
- CDE advisory
Energy Community Mapping Tool
The Inflation Reduction Act (IRA) of 2022 has created tax credit opportunities for clean energy projects sited within an energy community in the U.S.
Low-income and disadvantaged communities mapping tool
Your clean energy projects may be eligible for Greenhouse Gas Reduction Fund financial assistance based on location, household income or housing affordability.