The New Markets Tax Credit (NMTC) program was developed by the Federal Government to incentivize private investment in businesses in low-income communities. To see if NMTCs may work for financing and investing in your business, please review the questions below.
What is a typical NMTC funding project size?
A typical NMTC funding request is between $3 and $50 million, though the total project size may be larger. An NMTC financing request of more than $20 million typically requires the participation of multiple NMTC awardees.
What kind of business can be funded with NMTCs?
NMTCs are very flexible and can be used for almost any kind of business, including manufacturing, real estate development, community centers, health care, office space, downtown housing over commercial space, and farm, food and forest processing. The following are exceptions:
- Private or commercial golf courses
- Country clubs
- Massage parlors
- Hot Tub facilities
- Suntan facilities
- Racetrack or other facility used for gambling
- A store whose principle business is the sale of alcoholic beverages for consumption off-premises
- Any trade or business consisting predominantly of the development or holding of intangibles for sale or license
Prospective NMTC projects need to be located within a qualified census tract. Vermont Rural Ventures targets a majority of its NMTC resources to Vermont’s rural areas.
Vermont Rural Ventures uses NMTC resources to support investment in the economic, environmental, and social well-being of Vermont communities. NMTC funds are used to retain and create jobs and essential goods and services for Vermonters.