An Excerpt

Qualified CDEs apply to the Community Development Financial Institutions Fund (CDFI Fund) within the Department of Treasury for the authority to offer the tax credits to their investors. The NMTC awards process is very competitive with generally less than a quarter of applicants receiving credit allocation in any given year. A NMTC investor receives a tax credit equal to 39% of the total Qualified Equity Investment (QEI) made in a CDE. The credit is realized over a seven year period, 5% annually for the first three years, and 6% in years four through seven.

Download pdf