New Markets Tax Credits

Legislated by Congress in 2000, the New Markets Tax Credit (NMTC) program encourages investment of private capital for economic development in both rural and urban low income communities. Individuals and corporations receive a tax credit against federal income taxes for investing in certain low income properties or businesses when those investments are made through a certified “community development entity” (CDE). Mascoma Community Development, is a Community Development Entity, certified by the Community Development Financial Institutions Fund at the U.S. Department of the Treasury.

NMTCs are federal tax credits designed to leverage private investment in low-income communities. The NMTC program is administered by the Community Development Financial Institutions Fund of the U.S. Department of the Treasury. The Fund allocates these tax credits to qualified Community Development Entities through a highly competitive and selective application process.

Under the terms of the NMTC program, an investor making a seven-year investment receives NMTCs equal to 39% of the total project cost over the investment period (5% in years 1-3 and 6% in years 4-7).

A prospective NMTC project needs to be located within a qualified census tract according to U.S. Census Data.  MAP MY PROJECT

Typical projects involve the acquisition, rehabilitation or construction of commercial real estate developments, the purchase and installation of large equipment or machinery, or the expansion of operating businesses in low-income communities.

Qualifying Projects Include:

  • Commercial offices and retail services/products
  • Mixed-use (commercial/residential) properties
  • Factories and industrial facilities
  • Community centers
  • Educational facilities
  • Entertainment/cultural facilities
  • Health-related facilities

Projects Often Focus On:

  • Creating quality jobs in low-income communities
  • Assisting minority, women-owned and low-income community businesses
  • Offering flexible lease rates to tenant businesses
  • Providing goods and services and housing options in low-income communities
  • Improving access to healthy and affordable food options
  • Increasing environmental sustainability
  • Pioneering developments that will catalyze additional private investments in the community

Prohibited Businesses Under NMTC:

  • Massage parlor
  • Hot tub facility
  • Suntan facility
  • Country club
  • Racetrack or other facility used for gambling
  • Store whose principal purpose is the sale of alcoholic beverages for consumption off premises

“In accordance with federal law and the U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington D.C., 20220 or call (202) 622-1160.”