On December 21, 2000, the Community Renewal Tax Relief Act of 2000 was signed into law. This landmark legislation included the New Markets Tax Credit, which will spur the investment of $15 billion in new private capital into a range of privately managed investment vehicles that make loans and equity investments in New Markets businesses. By making an equity investment in an eligible “community development entity” (CDE), individual and corporate investors can receive a New Markets Tax Credit worth 39 percent of the amount invested over the life of the credit. By increasing their capital base, this tax credit enables CDEs to lend and invest more, to attract additional outside capital, and to bring even more private sector engagement to their market-priming activities.
Our Process
Through the NMTC Program, UDF’s primary objective is to improve the economic conditions and social support structures in low-income communities. Participants in UDF’s program must develop real estate and provide services that meet high community impact standards. UDF’s investments must show that their activities:
- Create stable employment opportunities with benefits for residents of low-income communities
- Provide needed goods or services
- Provide health care, education, or other social services to residents of low-income communities.
For further information, please download our “Community Impact Questionnaire” below to see if you qualify.