New Markets Tax Credit Funding


New Markets Tax Credit Program Contact

Las Vegas- (702) 486-2750
Carson City- (775) 684-2999

NMTC Funding Resources

New Market Tax Credit (NMTC) Overview

A little known source of funds, the NMTC program can help Nevada businesses- or businesses relocating to Nevada- gain access to gap funding to support  businesses located in economically distressed communities.  The NMTC program has developed a public-private partnership to attract private investment on terms that may otherwise be unavailable to these communities.

How does the program work? The U.S. Department of the Treasury, through the Federal Community Development Financial Institution Fund (CDFI), certifies specialized financial intermediaries called Community Development Entities (CDEs).  These entities are allocated federal tax credits to incentivize private capital to invest in ventures in distressed or disadvantaged communities.  For their investment, the private investors receive a tax credit against their federal income tax liability through the IRS. 

It is important to note that, despite the implication of the name, the businesses receiving the investment do NOT receive tax credits; however, they do receive favorable terms and potential benefits that help their business acquire the necessary cash to thrive and grow in otherwise challenging locations.  Generally speaking, NMTC funds fill the gap by contributing approximately 30% of a project’s total funding package.

There are two NMTC programs available in Nevada:

  • Federal NMTC – This program funds projects requiring over $5,000,000 in total equity and funding.  The CDFI recently allocated an additional $7,000,000,000 to support this program
  •  Nevada NMTC – This program funds projects from $200,000 to $2,000,000.  The Nevada allocation has been almost fully subscribed, with approximately $12,000,000 in investment funds remaining through the CDEs already selected in the Nevada program.

    Eligibility

    1.       To be eligible to apply for NMTC, the business must be located in a designated low income community.  Check your address at this website to see if your current or prospective location will qualify:   https://www.cims.cdfifund.gov/preparation/?config=config_nmtc.xml

    2.       A substantial proportion of the business activity must be contained within this low income zone. 

    3.       The funds cannot be invested in the following business activities: a massage parlor, bath house or hot tub facility, tanning salon, country club, liquor store, golf course, gambling facility, holding of intangibles for sale, or certain farming businesses. 

    4.         If you're ready to discuss your project with a NMTC investor, complete and return the NMTC Referral Form.