Property developers who aren’t already aware of the New Markets Tax Credit (NMTC) program should take a look. Designed to encourage development in lower-income communities, the program was made permanent in 2025 by the One Big Beautiful Bill Act. Congress has authorized $5 billion annually for qualified equity investments in Community Development Entities (CDEs). Investors (usually large banks) provide equity to these intermediaries in exchange for 39% tax credits over seven years. CDEs then make low-interest loans with favorable terms to eligible developers. To learn how the NMTC could fit into your tax strategy or future projects, contact us.
