--News Direct--
The New Markets Tax Credit Coalition today released its 2025 New Markets Tax Credit (NMTC) Progress Report, the 21st edition of the report—providing analysis of NMTC activities in 2024. The report was prepared by the NMTC Coalition, a national membership organization of Community Development Entities (CDEs) and investors organized to advocate for the NMTC. Every year since 2005, the NMTC Coalition surveys CDEs about their work, delivering billions of dollars to businesses, creating jobs, and rejuvenating the parts of the country that have been left behind.
The annual NMTC Progress Report presents the findings of the CDE survey and provides policymakers and practitioners with the latest trends and successes of the NMTC.
“This report shows the NMTC continues to be an efficient and powerful tool that drives impactful investments to low-income communities,” said Phil Glynn, NMTC Coalition Board Chair and President of Travois, a Certified B Corporation®️ focused exclusively on promoting housing and economic development for American Indian, Alaska Native and Native Hawaiian communities. “Two decades after its introduction, the NMTC remains one of the federal government’s most effective tools for job creation and economic stabilization. These investments create high quality, accessible jobs in the communities that need them most. Now is the time to ensure its permanence.”
Report highlights include:
JOBS AND INVESTMENT
- 350 projects totaling $8 billion received $4.8 billion in NMTC allocation (at a ten-year cost to the federal government of $1.22 billion).
- Projects generated 61,125 jobs in 2024, including 36,692 permanent full-time-equivalent (FTE) jobs and 24,433 construction jobs. The federal cost per job averaged under $20,000.
AREAS TARGETED
- Projects located in 44 states, the District of Columbia, and Puerto Rico.
- Severe Distress: 81.3 percent of NMTC financing went to severely distressed communities and 30.1 percent to non-metropolitan counties.
EQUITY PRICING
- NMTC equity pricing increased over the course of 2024. The median price reported was $.79.
COMPONENTS OF PROJECTS
- Jump-starting American Manufacturing: NMTC financing supported a record 114 manufacturing and industrial businesses with direct loans and equity investments for working capital, new equipment, or new or renovated industrial space, including shared, light industrial space for multiple manufacturing businesses. Rural communities benefited the most. In fact, since 2020, the NMTC has created nearly 35,000 rural manufacturing jobs.
- Real Estate: NMTC financing supported the construction or renovation of 17.5 million square feet of real estate and the construction or renovation of 1,095 homes and rental units targeted at low-to-moderate-income households.
STRENGTHENING COMMUNITY ASSETS
- Expanding Access to Healthcare: The NMTC expanded healthcare access for residents of low-income communities through 75 projects. Those projects included 53 federally qualified health centers, safety-net hospitals, and free clinics.
- Expanding Access to Education and Training: NMTC financing supported a record 114 manufacturing and industrial businesses with direct loans and equity investments for working capital, new equipment, or new or renovated industrial space, including shared, light industrial space for multiple manufacturing businesses. Rural communities benefited the most. In fact, since 2020, the NMTC has created nearly 35,000 rural manufacturing jobs.
This year, 87 CDEs participated in the survey. Their answers were supplemented by data from the Office of the Comptroller of the Currency, Open Corporate, annual reports, and other online materials from NMTC projects.
“Over the course of two decades, the data show the NMTC not only delivers an unprecedented level of capital to low-income rural and urban communities, but it also creates much-needed jobs—helping individuals and families thrive and, in turn, grows those local economies where they live and work. In fact, since 2003, the NMTC has created more than one million jobs,” said Coalition spokesperson Bob Rapoza.
The report showcases the importance of the NMTC in providing patient, flexible capital to businesses and projects located in distressed rural and urban communities, thereby creating jobs and growing business opportunities. NMTC financing ranges from traditional industry and community sectors to new and cutting-edge technology. Projects and businesses that benefited from the Credit in the past year include manufacturing, healthcare, schools, and many others supporting childcare, youth, and families.
Rapoza notes, “This report demonstrates that the NMTC has a 20-year track record of working, and Congress should, once and for all, expand and make the Credit permanent. It has the potential to positively impact communities across the country for decades to come.”
About New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) was enacted in 2000 to stimulate private investment and economic growth in low-income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. Since its inception, the NMTC has generated more than one million jobs. Today, due to the NMTC, more than $143 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico. For more information, visit www.NMTCCoalition.org.
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