Other Federal and State Tax Programs
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THE VALUE OF NMTC
The NMTC is taken over a 7-year period, and is equal to 39% of the original amount invested in the CDE.
The credit rate is 5% of the original investment amount in each of the first three years,
and 6% of the original investment amount in each of the final four years.
Examples of Benefits
- • The CDFI Fund awards a tax credit allocation of $1 million to a CDE.
- • The CDE offers the tax credit to a single investor in exchange for a $1 million equity investment.
- • Generates a $50,000 credit annually for the first three years;
- • Generates a $60,000 credit annually for the final four years.
- • Total credit value over 7 years is $390,000
NMTC PROCESS
WHAT IS A LOW-INCOME COMMUNITY?
*Map shows LICs in Los Angeles area Find LICs near you: https://www.cims.cdfifund.gov/preparation/?config=config_nmtc.xml