July 3, 2024

CDFI Fund: Summary Report and Public Data for NMTC Program for FYs 2003-2022 Released

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today released a summary report and data collected on all New Markets Tax Credit (NMTC) investments across the nation from fiscal year (FY) 2003 to FY 2022. The CDFI Fund requires all Community Development Entities (CDEs) that have been awarded NMTC allocations to submit an annual report detailing how they invested Qualified Equity Investment (QEI) proceeds in Low-Income Communities. These reports must be submitted to the CDFI Fund by CDEs, along with their audited financial statements, within six months after the end of their fiscal year.

Key highlights from the summary report from FY2003 to FY2022 include:

The summary report also documents the extent to which: (1) CDEs go beyond the minimum statutory definition of Low-Income Communities by committing to serve areas of higher distress, rural areas or targeted populations (slides 11-14); (2) CDEs leverage the NMTC to offer financing with flexible or non-traditional rates and terms (slides 15-17); and (3) CDEs commit to innovative uses of NMTC financing (slides 18-22).

Related Links:

NMTC Public Data Release: 2003-2022 Summary Report

NMTC Public Data Release: 2003-2022 Data File

About the NMTC Program

The NMTC Program enables economically distressed communities to leverage private investment capital by providing investors with a federal tax credit. All NMTC investments must meet statutory qualifications for their investors to be able to claim the tax credit. The vast majority of NMTC investments are made within statutorily defined “Low-Income Communities.” Low-Income Communities are census tracts with a poverty rate of 20% or greater, or a median family income at or below 80% of the applicable area median family income. In addition to investments located in Low-Income Communities, investments can qualify for NMTCs under other statutory provisions designed to target certain areas or populations, including provisions for Rural Counties, and Low-Income Targeted Populations.

Through the first 19 application rounds of the NMTC Program, the CDFI Fund has made 1,563 allocations, allocating a total of $76 billion in tax credit authority to CDEs through a competitive application process. This $76 billion includes $3 billion in Recovery Act allocations and $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone.

To learn more about the NMTC Program, visit the NMTC Program webpage on the CDFI Fund’s website at www.cdfifund.gov/nmtc.

This post was originally published here.