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New Market Tax Credits For Business Growth

September 10, 2024

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Are you a business owner looking to expand, relocate, or invest in an underserved area? If so, the New Market Tax Credits (NMTC) program could be the financial boost you need to make that move. This federal program is designed to encourage investment in economically distressed communities by providing tax credits to investors who fund business and real estate development projects in these areas. In turn, this can lead to significant economic growth, job creation, and community revitalization.

What is the New Market Tax Credits Program?

The NMTC program was created in 2000 to stimulate investment in low-income communities across the United States. The program works by offering a 39% federal tax credit spread over seven years to investors who invest in qualifying projects. This makes it more attractive for investors to put their money into businesses or real estate projects located in economically disadvantaged areas, where capital might otherwise be scarce.

How Can NMTC Benefit Your Business?

For businesses, the NMTC program can be a game-changer. If your business is located in or planning to expand to a qualifying area, you could potentially secure investment capital through this program. This capital could be used for a wide range of purposes, including:

  • Expanding your operations
  • Upgrading facilities or equipment
  • Creating new jobs
  • Supporting community-based projects that can help revitalize your neighborhood

Is Your Business Eligible?

The first step to benefiting from the NMTC program is determining if your business location qualifies. Not all areas are eligible, as the program specifically targets economically distressed communities. Fortunately, there’s an easy way to check.

Click here to see if your business location qualifies for NMTC by entering your address into the NMTC Mapping Tool. This tool will let you know if your location is in a qualifying area and if your business might be eligible to take advantage of this valuable program.

Benefits To Your Business

Many businesses across the country have already leveraged NMTC to fuel growth and contribute to their communities. For example, companies have used the tax credits to open new manufacturing facilities, create hundreds of jobs, and invest in long-term community infrastructure projects. Your business could be the next success story, driving both your company’s growth and the economic development of your community.

What’s Next? Contact the Pasco EDC

If you’re interested in exploring how NMTC could benefit your business, the Pasco Economic Development Council (Pasco EDC) is to help. Contact us today to learn more about how the New Market Tax Credits program can work for you.