Investing in a low-income community? New Markets Tax Credit

Your business may be eligible for funding through a new markets tax credit if your business is located in a community or area where
  • the median income level is less than 80% of the area or the statewide median;
  • 50%+ of your gross income comes from that location;
  • a "substantial portion" (40%-50%) of your tangible property and activities are located in a low-income community.
Banks, credit unions and other financial institutions are excluded.

You can submit your project for consideration to a Certified Development Enterprise (CDE). If it is approved, the CDE will raise funds from other businesses interested in investing in low income communities and provide them a 39% tax credit over 7 years. The funds will be used for a loan to you at more favorable terms that are usually available. Click here to find a list of CDE organizations who are authorized to process New Markets Tax Credit applications.