New Market Tax Credit

To be eligible for NMTC financing, businesses being financed must, at a minimum, be located in designated low-income communities, defined by U.S. Census data as census tracts with a poverty rate of at least 20% or with median family incomes that do not exceed 80% of area median income, qualifying such businesses as Qualified Active Low Income Community Businesses (QALICBs).

QALICBs must meet the following criteria and remain qualified throughout the seven years programmatic compliance period:

  • At least 50% of the QALICB's revenue must be derived from activity performed at the subject location
  • At least 40% of the QALICB's tangible property must be located within the low-income community
  • At least 40% of the QALICB's employees' services are performed within a low-income community
  • Income from rental of residential real estate may not account for more than 80% of revenue for the QALICB

New Market Tax Credit Areas Map (PDF)