New Markets Tax Credits (NMTC) Financing

What is the
NMTC Program?

The New Markets Tax Credits (NMTC) program is a federal initiative designed to bring private investment into economically distressed communities. Historically, many of these communities have faced persistent gaps in access to capital, limiting the development of essential facilities, services, and economic opportunity.

Investors receive a federal tax credit, and that capital is used to finance businesses and nonprofits in low-income areas that face limited access to conventional financing.

The Role of Community Development Entities

New Markets Tax Credits are delivered through certified Community Development Entities (CDEs), which serve as financial intermediaries between investors and projects in low-income communities.

Clearinghouse CDFI is a certified CDE, responsible for deploying NMTC capital into eligible businesses and nonprofits through flexible, community-focused financing structures.

Our NMTC Experience

New Markets Tax Credits Investment by the Numbers

$769 Million

of NMTC Allocation Deployed
104 Projects

Financed Nationwide

How New Markets Tax Credits Work

Investor Makes an Equity Investment

Individual and corporate investors place an equity investment with Clearinghouse CDFI to participate in the NMTC program.
Investor Receives the Tax Credit

In return, the investor receives a federal NMTC equal to 39% of the total investment, claimed over a seven-year period.
Capital Is Deployed Into Communities

Clearinghouse CDFI uses this capital to provide acquisition, permanent, and construction financing for eligible businesses and nonprofits.
Below-Market Financing Supports Growth

Loans are structured with below-market interest rates, advancing economically viable projects in NMTC-eligible census tracts.