New Markets Community Capital
Harnessing the power of our tax system to create community investment.
TELACU is the recipient of significant New Market Tax Credit (NMTC) allocations from the United States Treasury Department. New Markets Community Capital utilizes the NMTC Program to provide a powerful financing tool for important investments in urban communities.
The NMTC Program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. The credit provided to the taxpaying investor totals 39 percent of the cost of the investment and is claimed over a seven-year credit allowance period. Through our relationships with large institutional investors, New Markets Community Capital utilizes these tax credits to provide substantially below-market financing for qualified commercial, retail and industrial developments.
With the success of the NMTC Program, TELACU is able to more effectively redevelop communities, create more jobs and increase economic activity.