New Markets Tax Credits: What they are and how they work

How this innovative program could help you build and grow to serve communities in need.

What are New Markets Tax Credits?

Whether in big cities or rural areas, nonprofits serving low-income communities face unique challenges. While the need for their services only grows, securing financing for capital projects to improve residents’ lives can be arduous.

To help ease the process, the federal New Markets Tax Credit (NMTC) Program offers crucial gap financing for nonprofit organizations operating in low income, underserved communities which are seeking to expand. Activities may span a broad range, including but not limited to:

  • Health care
  • Access to healthy foods
  • Early childhood education/charter schools/universities
  • Workforce development training
  • Community facilities

Since the program began in 2000, more than $71 billion in NMTC financing has supported thousands of projects nationwide. For borrowers, the benefits can include lower interest rates and flexible and more favorable terms.

Yet, securing financing through NMTC isn’t automatic. Only certain organizations and projects qualify, and even those who qualify could feel daunted by the process or may even be unaware that the program exists.

Where to start?

While the NMTC Program is intended to provide the last piece of financing for your project, don’t wait until the last minute to start planning. A good place to start is by having a conversation with Regions’ NMTC professionals. Even if your project is still in the conceptual phase and months or years from breaking ground, we can help you evaluate whether your project might qualify and walk you through the NMTC benefits and requirements.

If you are new to the NMTC Program, you may be wondering about how it works. Does your organization and project qualify? What support and guidance do you need to move forward?

To find the answers to these questions, read our new article “Understanding New Markets Tax Credits” by Regions New Markets Tax Credit Practice.

Download a PDF of the full white paper here.

If you would like additional guidance or have questions, please contact us:

Steve Ross, New Markets Tax Credit Team Leader

Courtney Nolan, New Markets Tax Credit Relationship Manager

Katia Izyumova, New Markets Tax Credit Relationship Manager


This information is general education or marketing in nature and is not intended to be accounting, legal, tax, investment or financial advice. Although Regions believes this information to be accurate as of the date written, it cannot ensure that it will remain up to date. Statements of individuals are their own—not Regions’. Consult an appropriate professional concerning your specific situation and for current tax rules. This information should not be construed as a recommendation or suggestion as to the advisability of acquiring, holding or disposing of a particular investment, nor should it be construed as a suggestion or indication that the particular investment or investment course of action described herein is appropriate for any specific investor. In providing this communication, Regions is not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity.