What is NMTC?
The New Markets Tax Credit Program (NMTC) encourages private capital investment in economically distressed communities by providing investors with a federal or state tax credit. Capital made available through NTMC programs is used to finance job-creating businesses located in underserved, low-income communities.
As a result of the federal program’s success, a number of states have enacted state-level New Markets programs. When paired with the federal program, state NMTCs have a greater economic impact on their local communities.
Impact of the Federal NMTC Program
Between 2003 and 2015, $43.5 billion in direct federal NMTC allocation was made to businesses across the nation. As a result, this activity has produced the outcomes below:
• Supported nearly 750,000 jobs
• Leveraged close to $70 billion in total capital investments
• Financed over 4,700 businesses
To date, 14 states – Alabama, Arkansas, Florida, Illinois, Kentucky, Louisiana, Maine, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oregon, Utah – have enacted their own New Markets Investment Program. Other states have taken notice of the State New Markets Initiative due to the program’s runaway success.