What Is The New Market Tax Credit?

New market tax credits are part of the New Market Tax Credit program, a part of the Community Renewal Tax Relief Act of 2000. These tax credits give businesses and lending institutions money to invest in businesses that are located in struggling areas of the country. The companies that invest in the struggling businesses will receive a tax credit of 39% of the initial investment total, given back to them over a period of 7 years. This is given in addition to any returns on the initial investment.

New market tax credits are based on census tracts. In order to qualify for the tax credit, the investment must be made in areas that fall within designated census tracts. The IRS will be able to provide a new market tax credits map to investors who are interested in working with the program.

The program is designed to benefit businesses by helping them to become stronger. It will help communities by strengthening their economy and cleaning up the area, and it will help investors by providing them with a worthy investment to work with. It is truly a win-win situation for everyone involved.