How long must an investor hold the investment?
There is no minimum holding period. The investment is eligible for the credit on the date the investment is made and on six subsequent anniversary dates. The credit is equal to 5 percent of the amount invested for the first three allowance dates, with an increase to 6 percent for the remaining four allowance dates. The investor must hold the investment on the “credit allowance date,” which is the date on which the investment is initially made and on each of the six subsequent anniversaries of the date on which the investment is initially made. If the investment is not held on the credit allowance date, the investor is not eligible to take the New Markets Tax Credit.
