New Market Tax Credits

The New Markets Tax Credit (NMTC) Program, enacted by Congress as part of the Community Renewal Tax Relief Act of 2000, is incorporated as section 45D of the Internal Revenue Code. This permits individual and corporate taxpayers to receive a credit against federal income taxes for making Qualified Equity Investments (QEIs) in qualified community development entities (CDEs).

The New Market Tax Credit program was enacted to promote community investment from individuals and companies. The credit is provided to the company or individual that makes a qualified investment with a Community Development Entity (CDE). The invested money must be used by the CDE to provide low interest loans to new business ventures within a qualified census tract.

Qualified Community Development Entities (CDE) will apply for an award of new markets tax credits. The CDE will then seek Qualifying Equity Investments in the CDE. The CDE is required to use substantially all of the qualifying equity investments to make qualified low-income community investments (QLICI) in/to qualified active low-income businesses (QALICBs) located in low-income communities.

Every county in the NC Southeast region has qualified New Market Tax Credit census tracts: Anson, Bladen, Brunswick, Columbus, Cumberland, Hoke, Montgomery, New Hanover, Pender, Richmond, Robeson, Sampson, and Scotland Counties. North Carolina’s Southeast can assist qualified projects in identifying CDEs within the region.

For more details on the New Market Tax Credits Program and eligible census tracts, please click the map below.