New Market Tax Credits

Each year, the federal Community Development Financial Institutions Fund (CDFI) issues $3 billion dollars in tax credits through the New Market Tax Credit program (NMTC). These credits are intended to facilitate economic development, job creation, and poverty reduction in the most economically depressed parts of the country.

The program awards new or expanding businesses a tax credit worth 39% of the total investment. This credit can be applied against net profit within the first four years or sold to a third-party with sufficient tax liabilities for a portion of its face value.

If you’re thinking about creating a new business or expanding your existing business, the NMTC program could give your venture a capital boost in its early phase.

EIM can help determine if your project is eligible for these funds and help form partnerships to maximize the value of your new or expanding venture.