Addressing the Prevalence of Real Estate Investments in the New Markets Tax Credit Program

Author(s): Lauren Lambie-Hanson, Federal Reserve Bank of San Francisco

The New Markets Tax Credit (NMTC) program was created by Congress in December 2000, at the end of the Clinton administration. When initially passed, the program was to provide a total of $15 billion in tax credits between 2001 and 2007 to subsidize investments in businesses and real estate developments serving low-income communities.