About this programme
The New Markets Tax Credit (NMTC) Program is a federal tax-credit programme run by the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund. It is designed to attract private investment into low-income communities that otherwise see little capital reach them — think vacant commercial buildings, outdated manufacturing facilities, and gaps in access to education and healthcare providers.
The credit does not go directly to a business. It works through Community Development Entities (CDEs) — certified financial intermediaries that make loans, investments, or provide financial counseling in low-income communities (LICs). Individual and corporate investors who make equity investments in a CDE receive a federal income tax credit worth 39% of the investment amount, claimed over seven years. The CDE then deploys that capital as below-market financing into qualifying businesses and projects in the targeted communities.
For a business, the practical route into NMTC is not a direct application to the CDFI Fund — it is finding and working with a CDE that has NMTC allocation available in your area, since the CDE is the entity that structures the financing.
As of the end of FY 2023, the programme reports generating $8 of private investment for every $1 of federal funding, construction or rehabilitation of more than 268.2 million square feet of commercial real estate, and the creation or retention of more than 888,200 jobs.
How it works
The CDFI Fund allocates NMTC authority to CDEs through a competitive annual application round. A CDE that receives an allocation can then offer investors a 39% federal tax credit (spread over 7 years) in exchange for a Qualified Equity Investment (QEI) in the CDE.
The CDE uses the QEI proceeds to make Qualified Low-Income Community Investments (QLICIs) — loans or investments into businesses and projects located in, or serving, low-income communities. These typically come with more favourable rates, terms, or flexibility than conventional financing.
Because the credit flows through the CDE and its investors, the financing structure (and the underwriting) is set by the individual CDE, not by a standard CDFI Fund term sheet. Terms vary CDE to CDE.
Who can apply
Only organisations certified as CDEs by the CDFI Fund can apply for an NMTC allocation. To become a certified CDE, an organisation must be a legal entity at the time of application, have a primary mission of serving low-income communities, and maintain accountability to the residents of its targeted low-income communities.
Businesses and project sponsors do not apply to the CDFI Fund for NMTC financing directly. Instead, a business seeking NMTC-enhanced financing should contact a CDE directly — the CDFI Fund's NMTC Awardee States Served map lists CDEs active by state.
How to apply
- For a business or project sponsor: identify a CDE with NMTC allocation available that serves your state or community, using the CDFI Fund's NMTC Awardee States Served map, and approach that CDE directly about financing.
- For an organisation seeking to become a CDE: submit a CDE Certification Application to the CDFI Fund. Certification applications can be submitted at any time — there is no certification deadline except when tied to a specific open NMTC allocation round.
- For a certified CDE seeking an NMTC allocation: wait for the CDFI Fund to open an allocation round and publish the Notice of Allocation Availability (NOAA) for that round, which sets the round's specific dates.
- Register for the online Allocation Application in AMIS (the CDFI Fund's Awards Management Information System) by the round's registration deadline.
- If applicable, submit the Subsidiary CDE Certification Application (for QEI issuance and QLICI requirements) by its own, earlier deadline within the round.
- Submit the completed online Allocation Application via AMIS by the round's application deadline.
- The CDFI Fund reviews applications and announces awards; awardees are then subject to QEI issuance and QLICI investment-timing requirements.
Documents you’ll typically need
- CDE Certification Application (for organisations seeking CDE status)
- Notice of Allocation Availability (NOAA) for the current round
- NMTC Program Allocation Application
- NMTC Program Application FAQs
- NMTC Program Application — AMIS Navigation Guide
- NMTC Program Application Roadmap Presentation
- Introduction to the NMTC Program presentation
Frequently asked
Can a small business apply for the New Markets Tax Credit directly?
No. NMTC allocation is applied for and held by certified Community Development Entities (CDEs), not by individual businesses. A business seeking NMTC-backed financing works with a CDE that already holds an allocation, using the CDFI Fund's NMTC Awardee States Served map to find one serving its area.
What does the tax credit actually pay for?
The credit is worth 39% of an investor's Qualified Equity Investment in a CDE, claimed over 7 years. Investors receive the credit against their federal income tax; the CDE uses the invested capital to make below-market loans or investments into qualifying businesses and projects in low-income communities.
Who can become a certified CDE?
Any domestic corporation or partnership can apply, provided it is a legal entity at the time of application, has a primary mission of serving low-income communities, and can demonstrate accountability to the residents of the low-income communities it targets.
Is there a deadline to apply for CDE certification?
CDE Certification Applications can be submitted at any time. The only deadlines are the ones tied to a specific, currently-open NMTC allocation round — check the current round's Notice of Allocation Availability for those dates.
How much financing is available in a given year?
The CDFI Fund allocates NMTC authority to CDEs through a competitive annual application round; the amount awarded and the number of CDEs receiving allocation varies round to round. The most recently announced round (awards announced December 23, 2025) is the reference point — check the CDFI Fund's NMTC Program page for the current round's figures.
Who do I contact with questions about the programme?
For NMTC Program and allocation-application questions, contact the CDFI Fund's Help Desk at (202) 653-0421 option 3, or cdfihelp@cdfi.treas.gov (or submit a service request in AMIS to 'NMTC'). For CDE Certification questions, contact the Office of Certification Policy and Evaluation Help Desk at (202) 653-0423 or OCPECert@cdfi.treas.gov.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.