The New Market Tax Credit (NMTC) Program provides private-sector investors (e.g., banks, insurance companies, corporations, and individuals) with federal income tax credits in return for new investments in eligible busi­nesses, ranging from small business startups to real estate development. The program is designed to increase the amount of investment capital available to business and economic development programs in low-income communities that traditionally have had poor access to debt and equity capital. A low-income community generally is a census tract with a poverty rate of at least 20% or with median family income of up to 80% of the area median family income.

Each year, the NMTC program offers a seven-year, 39 percent federal tax credit for Qualified Equity Investments (QEI) made through investment vehicles known as Community Development Entities (CDE).  CDEs use capital derived from the tax credits to make loans and capital investments in businesses in underserved areas and projects in low income areas. By making an investment in a CDE, an individual or corporate investor can receive the tax credit worth 39 percent (30 percent net present value) of the initial investment, distributed over 7 years, along with any anticipated return on their investment in the CDE. The investor receives a tax credit equal to five percent of the total amount paid for the capital interest or stock purchase over the first 3 years.  For the final four years, the value of the tax credit is six percent annually.  

The NMTC was established by the Community Renewal Tax Relief Act of 2000 and is administered by the Community Development Financial Institutions (CDFI) Fund under the U.S. Department of the Treasury. The CDFI Fund was cre­ated for the sole purpose of expand­ing the availability of credit, invest­ment capital, and financial services in distressed urban and rural com­munities.

• New Markets Tax Credits Glossary
• For more information visit the Community Development Financial Institutions (CDFI) Fund website at http://www.cdfifund.gov. The CDFI Fund Web site provides access to CDE and NMTC application materials and workshops, a map of qualified census tracts and counties, and other information about the NMTC Program.

The Community Development Financial Institutions Fund (CDFI Fund) certifies CDEs on an ongoing basis, and allocates NMTC Allocations annually to select CDEs through a competitive application process. In order to qualify as a CDE, the entity must be a corporation or partnership that has a mission of serving, or providing investment capital, for low-income communities or persons. The group must also maintain accountability to residents of low-income communities through resident representation on governing or advisory boards. CDEs can include organizations such as community development corporations (CDCs), community development financial institutions, community development venture capital funds, small business development corporations, community loan funds, specialized small business investment companies, and others.

The Marietta-Cobb New Markets Fund, Inc. was established in 2007 through a partnership between the City of Marietta, Cobb County, the Marietta housing Authority and the Marietta redevelopment Corporation. Click here for more

Map of Marietta NMTC area
Map of Cobb County NMTC areas