Treasury announces New Markets Tax Credit awards 

June 6: The Treasury Department’s Community Development Financial Institutions (CDFI) Fund has awarded 87 organizations a total of $3.5 billion in New Markets Tax Credit (NMTC) authority to help revitalize low-income communities.

The NMTC Program, established by Congress in December 2000, allows a credit against federal income taxes for making equity investments in special entities known as Community Development Entities (CDEs).

The credit totals 39% of the cost of the investment, and is claimed over a seven-year period.

The CDE, in turn, use the capital raised to make investments to qualifying borrowers located in low-income communities.

KPMG observation

This latest round of NMTC allocations serves as a reminder of a great opportunity to take advantage of the tax benefits of investing in NMTC developments that create much needed capital for businesses in underserved low-income communities.

For more information, contact a tax professional with KPMG’s Washington National Tax:

Susan Reaman

(202) 533-3541

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