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Since 2000, the NMTC has generated investment in low-income communities across all 50 states, the District of Columbia and Puerto Rico. According to the U.S. Treasury Department’s Community Development Financial Institutions Fund, the program has raised more than $31 billion in private capital, leveraging about $8 of private capital for every $1 of NMTC investment in distressed communities.
A survey by the New Markets Tax Credit Coalition found that the program has:
The U.S. Congress extended the New Markets Tax Credit (NMTC) for 2014 at $3.5 billion annually under the Tax Increase Prevention Act in December 2014. Despite being named one of the nation's most innovative government programs by Harvard University, the NMTC remains at risk. Without legislative action, the future of using private capital to spur community and economic revitalization in low-income urban, suburban and rural areas hangs in jeopardy.
Your support is needed to encourage members of Congress to cosponsor legislation extending the NMTC program. With continued outreach, we can meet our ultimate goal to make the NMTC program permanent.
The New Markets Tax Credit (NMTC) program stimulates local economies in low-income, distressed communities. A proven, cost-effective tool, the NMTC supports job creation and encourages small businesses to expand.
Because of the NMTC, cities gain new tools for economic development, developers enjoy subsidized rates on debt or receive additional tax credit equity and investors fulfill CRA objectives and diversify their investment portfolio with commercial and mixed-use real estate.
Through the NMTC, Enterprise bridges financing gaps and provides a cushion against cash flow obstacles as projects reach stabilized operations.
Enterprise NMTC projects have ranged from an elementary school in Portland, Ore., to a domestic violence shelter in Harlem, N.Y., to a retail shopping center in Cleveland. In each case, our allocation has helped facilitate the completion of a vital local project.
Our investments also help cover up-front costs associated with installing energy-efficient, water-saving and other sustainable green-building features through our Enterprise Green Communities NMTC program.
We urge all members of the affordable housing and community development industries to get engaged in defending this critical tool.