The New Markets Tax Credits Programs (NMTC) is a federal economic development tax incentive program in designed to encourage private investment in low-income communities. The program was established to attract capital to areas that traditionally face economic challenges and lack access to sufficient investment for a variety of reasons. Created in 2000, the NMTC program has successfully delivered billions of dollars of investment into communities in need throughout the United States.
The NMTC program is administered by the Community Development Financial Institutions (CDFI) Fund, which operates under the U.S. Department of the Treasury. The CDFI allocates New Market Tax Credits to Community Development Entities (CDEs), that act as intermediaries to source and work with leverage lenders and NMTC investors to provide the private capital necessary to fund an investment in low-income communities via a Qualified Low Income Community Business (QALICB). CDEs deploy the invested capital to finance projects and businesses in low-income communities. These projects can include real estate developments, small business expansions, and the construction or renovation of community facilities like healthcare centers and educational institutions. Lenders or private investors in exchange for their capital, receive a federal tax credit of up to 39% of their investment in the CDE and the identified QALICB.
The ultimate goal of the NMTC program is to stimulate economic growth, create jobs, and improve access to essential services in low-income areas. By leveraging private investment, the program aims to attract businesses and projects that contribute to the overall well-being of the community. New Markets Tax Credits have been used in a wide range of projects, including affordable housing, healthcare facilities, manufacturing plants, education facilities, and retail developments. The program has proven successful in promoting positive economic development and revitalization in underserved communities across the country.
Semaphore is the controlling entity of Pacesetter CDE, INC (Pacesetter CDE). Since 2008, Pacesetter has been committed to providing providing economic opportunity and sustainable benefit to low and moderate income neighborhoods across America. Pacesetter CDE has invested over $211 Million across 28 different projects through the Federal NMTC Program under the CDFI Fund, and an additional $86 Million in 22 additional projects through various State NMTC Programs. These investments, across all market sectors and regions of the country, have created and retained thousands of jobs, have extended significant annual economic spin-off and helped untold families thrive by providing good paying jobs, access to healthcare, educational opportunity, sustainable clean energy, fresh food and just plain hope. These hundreds of millions of new investments in development, company operations and growth and community benefits that otherwise would not have been done without our help – and this program. Pacesetter CDE and Semaphore offer the opportunity to turn hope into reality by partnering with the US Treasury in its NMTC program as well as several states, including Arkansas, Florida, Illinois, Kentucky, Maine, Nebraska and Oregon in their own innovative state NMTC programs