New Markets Tax Credits
About New Markets
The US Treasury’s New Markets Tax Credit program (NMTC), began in 2000, spurs economic development activity in poor communities throughout the country. These economically disadvantaged communities often have good, viable business and economic development opportunities but have no access to capital. The NMTC addresses this capital gap by providing the incentive of a Federal tax credit to individuals or corporations that invest in Community Development Entities, CDEs, working in these communities.
Children enjoying the water at Mission Valley Aquatic Center.
Montana & Idaho CDC has used NMTC to fund numerous operating business expansions and real estate redevelopment across Montana and Idaho.
Montana & Idaho CDC will continue to use the tax credits to fund projects that will change the economic landscape of more Montana and Idaho communities.
New Markets Checklist
Criteria for NMTC Projects
- Project is located in a Low-Income Census Tract
- Project has high community impact
- Total project cost exceeds $4.0 million
- At least 20% of income from the completed project will come from commercial use (nonresidential)
- The project will not be sold for at least 7 years