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What is the NMTC?

April 26, 2017nmtc

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What is the NMTC?

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Part of the Community Renewal Tax Relief Act of 2000, the New Markets Tax Credit Program will spur approximately $15 billion in investments into privately managed investment institutions. In turn, these privately managed investment institutions, or Community Development Entities (CDEs), will make loans and capital investments in businesses in underserved areas. By making an investment in a CDE, an individual or corporate investor can receive a tax credit worth 39 percent (30 percent net present value) of the initial investment, distributed over 7 years, along with any anticipated return on their investment in the CDE.