New Markets Tax Credits were utilized in over 2,600 businesses and 3,990 real estate investments across the country between 2003 and 2011, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released today. In addition, over 75 percent of the tax credits were invested in census tracts that met one of three indicators of “severe distress,” such as lower incomes, higher rates of poverty, or higher unemployment rates—criteria greater than the minimum requirements for the New Markets Tax Credit Program. The data release demonstrates the wide-spread impact of the New Markets Tax Credit (NMTC), which has been a vital tool for economic development in low-income communities across the country. New Markets Tax Credits have been invested in every state and in both urban and rural communities—18.6 percent of the investments have been made in non-metropolitan areas—leading to new growth for areas of the country that have been lagging in the economic recovery. Of the Qualified Low-Income Community Investments (QLICIs) made:
- 3,990 (58.6 percent of total) QLICIs totaling $17,675,329,192 (66.9 percent of total), were made in real estate development and leasing activities.
- 2,637 (38.7 percent of total) QLICIs totaling $8,037,605,335 (30.4 percent of total) were made in operating businesses.
- 185 (2.7 percent of total) QLICIs t totaling $717,598,673 (2.7 percent of total) were investments in other CDEs.
Continue reading CDFI Fund Releases Public Data on New Markets Tax Credit Investments.