The New Markets Tax Credit was enacted in 2000 with a purpose of spurring private sector investment in economically distressed urban and rural areas often left out of the economic mainstream. The theory behind the program is that there are good business opportunities in many low income communities and that a modest federal subsidy could incent private sector investment and jump-start local economies. There is little doubt that the NMTC has achieved that goal.
Between 2003 and 2020, the NMTC delivered over $110 billion in capital investments to communities with high poverty rates, low incomes and high unemployment rates, financing everything from urban healthcare centers, rural factories and small business loan funds. The NMTC has been authorized by Congress through 2025.
Research and Data:
