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New Markets Tax Credit (NMTC Program)
CDFI Fund (U.S. Treasury) via certified Community Development Entities (CDEs)See programDeadline: Annual CDE allocation rounds (CDFI Fund announces awardees roughly annually). Project access requires partnership with a CDE that holds unused allocation. Program made PERMANENT by OBBBA (P.L. 119-21, July 4, 2025) — no longer requires periodic congressional reauthorization. Treasury awarded a record $10B in the 2024-2025 round to 142 CDEs.
Federal tax credit program administered by CDFI Fund under IRC §45D. Provides 39% credit over 7 years to investors who make Qualified Equity Investments (QEIs) in CDEs, which in turn finance Qualified Low-Income Community Investments (QLICIs) in distressed areas. MADE PERMANENT by the One Big Beautiful Bill Act (P.L. 119-21, July 4, 2025) at $5B/year — ending 25 years of short-term extensions. Most projects sized $5M–$20M total cost. Major use cases: grocery stores in food deserts, healthcare in underserved areas, charter schools, manufacturing facility construction, mixed-use redevelopment. Stacks with HTC, OZ, LIHTC, §179D, §48E. Requires CDE partner — major IL CDEs include Chicago Community Loan Fund (CCLF), IFF, Capital Impact Partners.
Program details
- Agency
- CDFI Fund (U.S. Treasury) via certified Community Development Entities (CDEs)
- Level
- Federal
- Category
- Real Estate Tax Incentive
- Eligibility
- Operating businesses, real estate projects, or community facilities located in Low-Income Communities (LIC) — generally census tracts with poverty rate ≥20% or median family income ≤80% of area median. Must invest through a certified Community Development Entity (CDE). Eligible uses: commercial real estate development, manufacturing facilities, community facilities (healthcare, education, child care), mixed-use, retail in food deserts, charter schools.
- Funding Amount
- 39% federal tax credit on Qualified Equity Investments (QEIs), claimed over 7 years: 5% per year × 3 years + 6% per year × 4 years. Permanently authorized at $5 billion in annual allocation under OBBBA, with up to 5-year carryforward of unused authority. Typical per-project allocations range $2M–$15M.
- Deadline
- Annual CDE allocation rounds (CDFI Fund announces awardees roughly annually). Project access requires partnership with a CDE that holds unused allocation. Program made PERMANENT by OBBBA (P.L. 119-21, July 4, 2025) — no longer requires periodic congressional reauthorization. Treasury awarded a record $10B in the 2024-2025 round to 142 CDEs.
- Status
- open
- Project Types
- real_estate, commercial, community, healthcare, manufacturing, mixed_use
- Client Types
- commercial, nonprofit
- Notes
- NMTC is allocation-driven — projects need a CDE partner with unused allocation. Lead time 6–18 months from project conception to closing. Most effective stacked with HTC (federal historic) for adaptive reuse projects in LIC tracts. For evlv.energy: surface in research chat when query mentions "community facility", "grocery", "healthcare", "school", "adaptive reuse", "low-income census tract", or project size >$2M in LIC area.
Source: Grantya research. Confirm current terms with the administering agency before applying.