Brief What Are the NMTC Program’s Impacts on Local Economic Conditions?
Brett Theodos, Christina Plerhoples Stacy, Daniel Teles, Christopher Davis, Ananya Hariharan
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To understand how NMTC investments affect communities, we estimate the effects of different types of NMTC projects on their neighborhoods to determine whether those projects had the expected impacts. We find large increases in local economic activity following NMTC projects, including increases in the number of firms, jobs, residents with jobs, median income, and reductions in poverty. We also find an increase in the number of adults with college degrees that, although small, is large enough to account for the modest estimated increases in residents with jobs and wages and for much of the estimated decline in poverty.

The authors revised this brief on December 21, 2021, to correct an error in tables 1 and 3. The tables have been corrected to show that the impact of NMTC on jobs in neighborhoods was estimated with a sample that included 4,575 projects located in 3,955 census tracts and that the impact of NMTC on residents with jobs was estimated using a sample that included 4,476 projects located in 3,875 census tracts.

Research Areas Neighborhoods, cities, and metros
Tags Federal urban policies Job opportunities Community and economic development
Policy Centers Metropolitan Housing and Communities Policy Center