The New Markets Tax Credit (NMTC) Program provides federal tax credits to attract private investment into distressed communities. NMTCs support a wide range of projects, including large commercial developments, hotels, arts centers, day care centers, medical clinics, small-business expansions, mixed-use developments, and homes for sale.

Research and Evidence Housing and Communities
Expertise Community and Economic Development Center for Local Finance and Growth
Tags Community development finance and CDFIs Community Reinvestment Act Equitable development Small businesses Impact investing
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  • Brief Which Types of Projects Receive New Markets Tax Credit Funding?

    To better understand the projects NMTCs fund, we developed a typology to describe the universe of projects funded from the start of the program through the most recent year that project-level data are available. Looking across all years of the program, manufacturing and food processing projects received the most funding, closely followed by retail, health care, and schools and child care. Other uses include office and professional services; community facilities; market-rate housing development; services for vulnerable people; hotels; energy, water, waste, and sewage; transport, warehouse and wholesale; forest, agriculture, mining, and quarry; investments in community development entities; and affordable residential development.




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    Staff
    • Director, Center for Local Finance and Growth
    • Principal Research Associate
    • Principal Research Associate
    • Senior Research Associate
    • Urban Institute Associate