New Markets Tax Credit Program (NMTC)
ABOUT THE NEW MARKET TAX CREDIT PROGRAM
The NMTC Program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). These CDEs offer the credits to taxable investors in exchange for stock or a capital interest in the CDE. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities -- investments that will help finance community development projects, stimulate economic growth, and create jobs.
NEW JERSEY REDEVELOPMENT AUTHORITY (NJRA) AND NEW MARKET TAX CREDITS
On June 5, 2014, the NJRA was awarded $20 million in New Market Tax Credits by the U.S. Treasury’s Community Development Financial Institutions Fund (CDFI). The tax credits will be used to invest capital in commercial and mixed-use development projects in distressed low-income communities in New Jersey.
The NJRA was one of only 87 CDEs awarded NMTCs and the only New Jersey-based grantee in the 2013 round. This federal funding, through the CDFI Fund, will support NJRA's efforts to respond to identified capital gaps in areas with high poverty, low wage and high unemployment in Elizabeth, Jersey City, Newark and areas of New Jersey severely impacted by Superstorm Sandy.