New Markets Tax Credits (NMTC)
The NMTC program awards competitive tax credits that project sponsors can use to attract private investment for revitalization of commercial properties and markets in qualified census tracts.
The CDFI Fund allocates tax credits to certified community development entities (CDEs), financial intermediaries that aggregate private capital from investors and place it in qualified businesses located in low-income communities. With an allocation of NMTC, CDEs can offer tax credits to investors in exchange for equity in the CDE. CDEs then use the capital from these equity investments to make loans and investments to businesses operating in qualified low-income census tracts, typically at more favorable rates and terms than conventional lenders can offer.
Community development entities (CDEs) certified by the CDFI Fund
Role In Creative Placemaking
Recipients can use the funds generated with NMTC for construction of commercial and facilities space for creative economy businesses, arts organizations, or community cultural groups.
Not applicable, but loans from tax credit revenue are not likely to cover the entire project cost
Role in Creative Placemaking
This section represents our attempt to capture how this specific funding opportunity might fit into a placemaking initiative.
Who can apply? Eligibility is often limited, but in partnership with other entities you may identify an access point, such as subgrant opportunities. This information can help you determine which potential partners in your community might be able to access the funds.
These examples show how these funds have been used for creative or placemaking endeavors in the past, the types of organizations that have successfully accessed the funds and/or the types of activities for which the funds can be used.
Maximum funding amounts can vary from year to year. We have provided the most recent information available. Where available, we also include a median or a range in cases in which the maximum is not typical of an average award.
Most federal programs require some form of cost sharing. This is expressed differently for different agencies and programs. Sometimes a direct 1:1 match is specified. Other times, the application will state the maximum percentage of a project cost that the funding award can cover. We include this information, where available, in order to give you a sense of what to expect when applying for a particular funding program.
Most federal funding programs will require financial and progress reports at least annually, along with a final report. We consider this to be a "moderate" compliance burden. Where a higher degree of data collection and reporting is indicated, we convey that information with a "substantial" rating.