New Market Tax Credit

The New Markets Tax Credit (NMTC) is a program that encourages investment in low-income communities by providing a tax benefit to investors. When investors put money into projects like affordable housing, community facilities, or small businesses in these areas, they earn tax credits over several years. This makes the projects more financially attractive, helping spur economic development and job creation in underserved neighborhoods. Essentially, the NMTC leverages private investment to revitalize communities that need economic growth, while offering investors a tax incentive for supporting these initiatives.