We're putting the New Markets Tax Credit Program to work for communities.
The federal New Markets Tax Credit (NMTC) was created to encourage investment in low-income communities, essentially picking up where housing investment leaves off by fueling the services, amenities, and jobs that neighborhoods need to thrive.
Investors in the NMTC receive a credit over a seven-year period to provide capital, loans and financial services in underserved markets. Accessing the NMTC is a competitive and multi-year process for CDEs like MainStreet Community Capital. We expect in the future to be able to offer tax credits to investors. In the meantime, we are actively participating in projects organized by other CDEs. The NMTC program is administered by the Community Development Financial Institutions Fund (CDFI Fund), a division of the U.S. Department of the Treasury.
Once we have received an allocation of tax credits, MainStreet Community Capital, like all CDEs, will have five years to utilize them. However, the demand for the credits has resulted in a much more rapid deployment.
When we build stronger communities, we all grow and thrive.
Strengthening neighborhoods
MainStreet Bank's investments in mixed-use and stand-alone affordable housing have helped to create safe, affordable housing in many communities. But housing alone does not create healthy neighborhoods or successful families.
Building community services
MainStreet Community Capital is focused on building facilities for the many community services needed to support low-income families and make neighborhoods more livable. Amenities such as child care, grocery stores, and medical facilities can anchor communities with jobs and services.
