The Native CDFI Network (NCN) strongly encourages all Treasury-certified Native Community Development Entities (CDEs) to apply for the CDFI Fund’s Calendar Year (CY) 2024-2025 New Markets Tax Credit (NMTC) Allocation, which has an application deadline of Wednesday, January 29, 2025. This double round will make a total of $10 billion in Allocation Authority available.
To apply for a NMTC allocation, a Native CDFI must have been certified by Treasury as a CDE as of November 21, 2024. The NMTC Program spurs investment of private sector capital into distressed communities by providing a tax credit to corporate or individual taxpayers who make Qualified Equity Investments (QEIs) in designated CDEs. The CDEs, in turn, invest the raised capital in businesses in low-income communities. The tax credit provided to the investor totals 39% of the investment in a CDE and is claimed over a seven-year credit allowance period.
Last September, the CDFI Fund belatedly announced $5 billion in NMTC allocations for the CY 2023 round to a total of 104 CDEs. However, just one Native CDE (Alaska Growth Capital at $40 million) received an award, and several other Native CDE applicants were denied. NCN has since been aggressively engaging CDFI Fund leadership to support more Native CDFIs in becoming CDEs and push for key changes to the application process to provide Native CDEs a fair shot at receiving NMTC allocation awards. The CY 2024-25 NMTC Allocation awards will be announced this fall.
To learn more about NMTCs and to apply for an allocation for Calendar Years 2024 and 2025, please click here.
To view the updated FAQs, click here.