Treasury awards $5 billion in New Markets Tax Credit (NMTC) allocations

NMTC awards made to 107 community development entities

NMTC awards made to 107 community development entities

The U.S. Treasury Department's Community Development Financial Institutions (CDFI) fund today announced $5 billion in New Markets Tax Credit (NMTC) allocations—bringing the total amount awarded through the NMTC program to $71 billion.

According to the CDFI announcement, the NMTC awards were made to 107 community development entities (CDEs) made through the calendar year 2021 round of the NMTC program. The award recipients are headquartered in 35 different states and the District of Columbia. Over 20% of the investments will be made in rural communities. It is estimated that these award recipients will make more than $1 billion in NMTC investments in non-metropolitan counties.

Read the list of CDEs awarded NMTC allocations in calendar year 2021 in the NMTC award book CY 2021 [PDF 577 KB]


Historically, NMTC awards have generated $8 of private investment for every dollar invested by the federal government. Through the end of fiscal year 2021, NMTC program award recipients deployed approximately $62.9 billion in investments in low-income communities and businesses—resulting in the creation or retention of more than 857,000 jobs, and the construction or rehabilitation of more than 239 million square feet of commercial real estate.

The NMTC program allows an investor a tax credit against its federal income taxes for making qualified equity investments in CDEs that invest in qualified low-income community investments.

The Treasury Department allocates the NMTCs to the CDEs that, in turn, make qualifying investments (generally loans) to businesses located in low-income communities. The NMTC totals 39% of the investor’s cash contribution in exchange for the qualified equity investment in the CDE and is claimed over a seven-year credit period. Investors in leveraged NMTC transactions may use borrowed funds along with their cash investment to receive tax credits on their qualified equity investment. Qualified businesses benefit from favorable NMTC financing terms and the potential for partial debt forgiveness after the end of the NMTC period.

For more information, contact a tax professional in KPMG’s Washington National Tax:

Vish Amin |

Julie Chapel |


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.