The New Markets Tax Credit (NMTC) was extended for 2012 and 2013 at $3.5 billion annually under the American Taxpayer Relief Act. However, 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.
Since 2000, NMTC have generated investment in low-income communities across all 50 states, the District of Columbia and Puerto Rico. According to the Treasury Department’s Community Development Financial Institutions Fund, to date 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.
Helped support more than 15,000 businesses in low-income communities
Developed or rehabilitated over 68 million square feet of real estate
Created more than 500,000 jobs
Your support is also needed to encourage members of Congress to cosponsor legislation extending the NMTC program – H.R. 2655 and S. 996. With continued outreach, we can meet our ultimate goal to make the NMTC program permanent.
Why NMTC Works
The New Markets Tax Credit (NMTC) program stimulates local economies in low-income, distressed communities. A proven, cost-effective tool, NMTCs support job creation and encourage small businesses to expand.
Because of NMTCs, 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.
Enterprise's NMTC projects have ranged from an elementary school in Portland, Ore., to a domestic violence shelter in Harlem, to a retail shopping center in Cleveland. In each case, our allocation has helped facilitate the completion of a vital local project that otherwise would not have moved forward. Through the program, Enterprise bridges financing gaps and provides a cushion against cash flow obstacles as projects reach stabilized operations.
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.
See our video of NMTC impact
A Catalyst for Community Renewal. Learn about the transformational NMTC program in Roxbury, Mass., Baltimore and Los Angeles.