Established by Congress in December 2000, The New Markets Tax Credit (NMTC) Program of the U.S. Department of Treasury gives corporate taxpayers the opportunity to receive a 39 percent federal tax credit by investing in qualified projects in low-income communities.

Investors can earn attractive rates of return while meeting a community need. Qualified businesses gain access to development funds at reasonable rates and community development entities fulfill their mission by helping stimulate economic growth and job creation in specifically targeted lower-income communities.

The NMTC initiative is designed to mobilize more than $26 billion in development capital based on a direct federal income tax credit of 39 percent spread over seven years. The program already is proving to be a powerful tool that helps underserved communities in the Dakotas.

The program attracts smart capital to good projects on favorable terms and allows investors to book new business with enhanced returns, while helping create greater opportunities for low-income communities.