Historically, low-income communities have lacked investment and resources. To combat this disinvestment, the U.S. government established the New Markets Tax Credit (NMTC) program in 2000. The program is designed to attract private investment to distressed communities and spur community development and economic growth.
“The New Markets Tax Credit program is a critical source of financing for businesses and community facilities in low-income urban and rural areas,” said En Jung Kim, Head of New Markets Tax Credit for Community Development Banking at J.P. Morgan. “By providing gap funding for projects ranging from federally qualified health centers to large-scale manufacturing facilities, the program supports expanded services and employment opportunities to help improve residents’ quality of life.”
Considering the New Markets Tax Credit program?
The NMTC program helps spur economic investment in low-income communities. Here’s how it works.
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NATIONALLY
Through 2023, NMTC allocations have supported a total investment of over $135 billion across 8,500 projects around the country. Source: New Markets Tax Credit Fact Sheet, New Markets Tax Credit Coalition
J.P. MORGAN NMTC QUALIFIED EQUITY INVESTMENTS From January 2012 to March 2025
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$10 billion across 651 projects
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39% of equity invested in qualified projects located in and serving low-income communities is provided to investors as a tax credit
20% of qualified project development costs can be covered using NMTC financing
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PLAN AHEAD
The tax credit is taken over seven years.
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ELIGIBILITY REQUIREMENTS
If you’re seeking funding for a development, NMTC may be able to fill that gap. Consider the tax credit’s eligibility requirements.
NMTC-eligible projects are located in eligible census tracts, which have: 20% poverty rate OR <80% of Area Median Income (AMI)
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As the program grows more competitive, projects are increasingly in census tracts with: 30% poverty rate OR <60% of Area Median Income (AMI)
Some projects may not qualify, such as:
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Farms
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Racetracks and gambling facilities
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Liquor stores
Previously approved NMTC projects include:
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Community healthcare centers
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Charter schools
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Manufacturing businesses
NMTC projects positively impact their communities
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Creation and retention of quality, accessible jobs
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Commercial or community goods or services
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Environmentally sustainable
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Financing for minority businesses or healthy food
Let's assess your project's eligibility.
SEND DETAILS TO
En Jung Kim, Head of New Markets Tax Credit
en.jung.kim@jpmorgan.com
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for full disclosures and disclaimers related to this content. 1392334
J.P. Morgan has been an investor in NMTC equity since the program’s inception. Our designated team is here to help project owners throughout the development process, including assessing eligibility.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
