CDFI Fund Releases Application Demand for CY 2024-2025 Round of the New Markets Tax Credit Program

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today that it received 216 applications for the calendar year (CY) 2024-2025 round of the New Markets Tax Credit Program (NMTC Program). The NMTC Program advances economic development in economically distressed communities by making tax credit allocations available to Community Development Entities (CDEs) for targeted investments in eligible areas.

The CDEs that applied under the CY 2024-2025 round are headquartered in 46 states, the District of Columbia, Puerto Rico, and Guam. These applicants requested an aggregate total of $19.2 billion in NMTC allocation authority, almost double the $10.0 billion in authority available for the 2024-2025 round.

Created by Congress in December of 2000, the NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in CDEs. The investor is provided a tax credit that equals 39% of the cost of the investment and is claimed over a seven-year period. Substantially all the taxpayer's investment must be used by the CDE to make qualified investments in low-income communities. Successful applicants are selected only after a competitive application and rigorous review process that is administered by the CDFI Fund.

Through the first twenty rounds of the NMTC Program, the CDFI Fund has made 1,667 awards totaling $81 billion in tax credit allocation authority. This $81 billion includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.

For more information about the NMTC Program, visit the CDFI Fund’s website at www.cdfifund.gov/nmtc.