Historically, low-income communities have lacked investment and resources. To combat this disinvestment, Congress established the New Markets Tax Credit Program (NMTC) in 2000. The program is designed to attract private investment to distressed communities and spur community development and economic growth.
“The New Markets Tax Credit Program is a critical source of financing for businesses and community facilities in low-income urban and rural areas,” said En Jung Kim, Director of New Markets Tax Credit for Community Development Banking at JPMorgan Chase. “By providing gap funding for projects ranging from Federally Qualified Health Centers to large-scale manufacturing facilities, the program supports expanded services and employment opportunities to help improve residents’ quality of life.”
Considering the New Markets Tax Credit Program?
The NMTC Program helps spur economic investment in low-income communities. Here’s how it works.
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NATIONALLY
Through 2021, NMTC allocations have supported a total investment of over $120 billion across 7,500 projects around the country. Source: New Markets Tax Credit Fact Sheet, New Markets Tax Credit Coalition
JPMORGAN CHASE NMTC CONTRIBUTIONS From January 2012 to December 2021
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$7 billion across 460 projects
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39% tax credit is provided to investors who support qualified projects that are located in and serve low-income communities
20% of qualified project development costs can be covered using NMTC financing
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PLANNING AHEAD
The tax credit is taken over seven years.
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ELIGIBILITY REQUIREMENTS
If you’re seeking funding for a development, NMTC may be able to fill that gap. Consider the tax credit’s eligibility requirements.
NMTC-eligible projects are located in eligible census tracts, which have: 20% poverty rate OR <80% of Area Median Income (AMI)
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As the program grows more competitive, projects are increasingly in census tracts with: 30% poverty rate OR <60% of Area Median Income (AMI)
Some projects may not qualify, such as:
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Farming
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Race tracks and gambling facilities
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Liquor stores
Previously approved NMTC projects include:
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Community healthcare centers
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Charter schools
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Grocery stores in food deserts
NMTC projects positively impact their communities
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Environmentally sustainable
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Commercial or community goods or services
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Creation and retention of quality, accessible jobs
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Financing for minority businesses or healthy food
Let's assess your project's eligibility.
SEND DETAILS TO
En Jung Kim, Director of New Markets Tax Credit
en.jung.kim@chase.com
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for full disclosures and disclaimers related to this content. 1392334
JPMorgan Chase has been an investor in NMTC equity since the program’s inception. Our designated team is here to help project owners throughout the development process, including assessing eligibility.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content.
