ActiveRequires VerificationFederal

New Markets Tax Credit Program.

NMTC attracts private investment to qualifying low-income communities through certified financial intermediaries.

Offered byCommunity Development Financial Institutions Fundverified 2026-07-10

Overview

What it does.

A Chester project does not apply to Treasury for a grant. A sufficiently large and eligible project works with a Community Development Entity that has allocation authority and interest in the transaction.

Best for: A larger commercial, manufacturing, mixed-use, nonprofit, or community-facility project with a substantial financing gap.

Eligibility

Who and what may qualify.

Eligible applicants

  • Certified Community Development Entities apply for federal allocation authority
  • Qualifying projects seek financing from a CDE serving their area

Applicants excluded by the source

  • Businesses applying directly to the CDFI Fund for project tax credits

Eligible uses

  • Qualified investments in eligible low-income communities through a certified CDE

Uses excluded by the source

  • Projects outside qualifying census tracts or otherwise failing federal rules

Application

How to start.

  1. Verify the project address and business meet NMTC location and activity rules.
  2. Identify CDEs with Illinois service authority and available allocation.
  3. Prepare detailed project, community-impact, and financing information.

Timing: Project intake depends on CDE allocation availability; the federal allocation competition has separate deadlines.

Planning notes

Limits to account for.

  • The project must be in an eligible low-income community and meet federal business and transaction rules.
  • Transaction complexity and cost usually favor larger projects.

Often layered with tax credits, public financing, philanthropy, and conventional debt after legal and tax review.

Evidence

Official sources.