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 percent or with median family incomes that do not exceed 80 percent 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 percent of the QALICB’s revenue must be derived from activity performed at the subject location

• At least 40 percent of the QALICB’s tangible property must be located within the low-income community

• At least 40 percent 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 percent of revenue for the QALICB

 

New Market Tax Credit Areas Map