New Markets Tax Credits
The New Markets Tax Credit (NMTC) Program was authorized by Congress in December 2000 as part of the bi-partisan Community Renewal Tax Relief Act of 2000 (PL 106-554) and amended through the American Jobs Creation Act of 2004 (PL 108-357). The NMTC was further amended by the Tax Relief and Health Care Act of 2006 (PL 109-432) and extended through 2008. The rule governing NMTC is Section 45(D) of the Internal Revenue Code.
Administered by the CDFI Fund of the U.S. Department of the Treasury, the NMTC Program was created to stimulate investment and economic growth in low-income communities that lack access to the capital needed to support and grow businesses, create jobs, and sustain healthy, local economies. By providing private investors with a federal tax credit, the Program facilitates investments made in job creating businesses or catalytic real estate and economic development projects located in some of the most distressed communities in the nation, i.e. census tracts where the individual poverty rate is at least 20% or where median family income does not exceed 80% of the area median.
For a short video on how the NMTC Program works, click here.
Since 2010 AltCap has provided NMTC facilitated financing for $158 million in investments by family-owned small businesses to social service nonprofits to real estate development entities, all in low-income communities throughout Kansas City, Missouri.
Learn how NMTCs have helped to catalyze economic growth and development in Kansas City.