New Market Tax Credits

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Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers. The New Market Tax Credit Program (NMTC Program) aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies.

 

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years.

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According to Cohen Reznick's New Market Tax Credit Map, downtown Chambersburg may be eligible for New Market Tax Credits. Check out this pdf.

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Resources:

• New Market Tax Credit Fact Sheet

• Commonwealth Cornerstone Group

• Community First Fund

• Cohen Reznick