At-a-Glance
The New Markets Tax Credit Program

The New Markets Tax Credit program was created by Congress in 2000 to permit taxpayers to receive a credit against federal income taxes owed by making equity investments in Community Development Entities or CDEs. The Program requires that substantially all of the equity contributed to these CDEs must in turn be used by them to invest in our nation's low-income communities.

President Bush has signed into law the Emergency Economic Stabilization Act of 2008. Following approval by the Senate earlier this week, the U.S. House of Representatives today also approved this sweeping legislation designed to stabilize the U.S. economy and financial markets. Rejected by the House earlier in the week, the amended bill passed by a vote of 263-171.

This bill includes the extension of New Markets Tax Credits through 2009 at $3.5 billion, as well other expiring tax, energy credit provisions and a one year patch for AMT. The Act provides up to $700 billion for financial rescue efforts. The bill also includes an increase in FDIC deposit insurance limit to $250,000, suspension of certain mark to market accounting standards, disaster assistance provisions and mental health parity provisions.

The Community Development Financial Institutions (CDFI) Fund announced the start of the seventh round for allocation application for tax credits under the New Markets Tax Credit (NMTC) program on Friday, January 16th. The deadline for application submission is April 8, 2009. For more information regarding the allocation availability (NOAA) for the 2009 application round click here: www.cdfifund.gov.