NMTC Background -

•At the time of enactment, the New Markets Tax Credits (NMTCs) program was the largest federal subsidy created for economic development in low-income communities.

•The NMTCs program was administered by the US Treasury’s Community Development Financial Institutions Fund (CDFI) and the Internal Revenue Service under Section 121 of the Community Renewal Tax Relief Act of 2000. CDFI allocates NMTCs each year based on an application process.

•NMTCs are codified in Section 45D of the Internal Revenue Code.