The New Markets Tax Credit (NMTC) team at Forvis Mazars is pleased to pass along recent news concerning the NMTC Program. On December 23, 2025, the Community Development Financial Institutions (CDFI) Fund announced the calendar year (CY) 2024-2025 allocatees of the NMTC Program. A total of 142 Community Development Entities (CDEs) received a combined $10 billion in allocation from a pool of 216 applicants. In total, all applicants requested $19.2 billion in tax credit allocation authority.
According to the New Markets Tax Credit Program Award Book: Calendar Year 2024-2025, the award recipients are in 41 states, Puerto Rico, and the District of Columbia. Of all award recipients, 65 focus on a national service area, 39 focus on a multistate service area, 24 will focus on a statewide service area, and 14 will focus on a local service area (citywide or countywide). Approximately 85% of the NMTC proceeds are likely to be used to support investments in businesses with the remaining balance going to support real estate projects. It is also expected that more than 20% of the investments will be made in rural communities. Moreover, all allocatees committed to providing at least 85% of their investments in areas characterized by: multiple indicia of distress, significantly greater indicia of distress than required by NMTC Program rules, or high unemployment rates. Deep Distress Areas are projected to receive $2.651 billion and NMTC Native Areas are projected to receive $236.4 million.
Over its history, the NMTC Program has leveraged $8 of private investment for every federal dollar. Through fiscal year 2024, program recipients invested more than $71 billion in low‑income communities and businesses.
What Happens Next?
CDEs will now execute their allocation agreements with the CDFI Fund while also reviewing projects for investment. CDEs will select and fund projects for closing in Q1 and Q2 2026, so now is the right time to start talking to your clients about their plans. If you are considering an NMTC investment, have questions about the program, or would like to have a general discussion, the NMTC team at Forvis Mazars is available to provide guidance and insight.
About the NMTC Program
According to a U.S. Treasury description of the program: “The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as CDEs. CDEs that are awarded tax credit allocation authority under the program are U.S. corporations or partnerships that offer loans, make investments, or provide financial counseling in low‑income urban and rural areas. Investors receive a tax credit equal to 39% of their investment, claimed over a seven‑year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority.” To date, the CDFI Fund has conducted 21 allocation rounds and issued 1,809 awards, representing a total of $91 billion in tax credit allocation authority.
This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.1
How Forvis Mazars Can Help
Our experienced team can support your New Markets Tax Credit needs and help you navigate opportunities in this year's allocation cycle and more. Whether you’re seeking to understand the program, need sourcing and closing funding, or want to explore how our proprietary TaxCred PRO® for New Markets Tax Credit can help save you time and reduce transaction fees, we can assist. Reach out to our NMTC team today!
- 1Data aggregated from the FY24 New Markets Tax Credit (NMTC) Public Data Release and the CY23 and CY24/25 Award Announcements