A new, independent report on the Compliance Review of the New Markets Tax Credit (NMTC) program was released last week indicating positive results for the community development program. The report examines whether the recipients of the tax credit have complied with program requirements, and whether the recipients’ NMTC investment activities have aligned with the objectives of the program. Annie Donovan, director of the Community Development Financial Institutions Fund (CDFI Fund), said that the report “demonstrates that New Markets Tax Credits are being used as Congress intended: to attract private investment into projects in economically distressed communities.”
In June, the NMTC Coalition also released their annual progress report on loans, investment and community impact of the NMTC in 2016. New research in the report finds that NMTC projects generated 49,940 full-time jobs and 21,706 construction jobs in rural areas between 2003 and 2014. In that period, the NMTC delivered $11.6 billion in capital investment to finance 817 rural businesses, healthcare facilities, schools and other revitalization projects. The report also provides data on and examples of the NMTC’s role in stimulating manufacturing in rural communities, delivering over $4.8 billion in total project financing to rural manufacturing projects, with 27 percent of NMTC projects in rural communities involving manufacturing.