Federal New Markets Tax Credit

 

This tax credit is available to investors in Community Development Entities (CDEs) for qualifying investment the CDEs make in those businesses that are located in low-income communities. The best way to utilize this credit is to find an existing CDE that already has an allocation and convince them to loan the developer funds for a project, likely at a low interest rate.

Requirements

  • Commercial real estate qualifies as a business for the purposes of CDE investments

  • Investment by the CDE can be in the form of a loan or equity

  • The CDE must receive allocation from the federal government for the credits

  • The CDE can provide the owner/developer an interest-only loan for 20% of the project cost which loan is “forgiven” after five years

Benefits

  • Credit is equal to 49% of the amount of the CDE’s investment

  • 5% for each of the first three years

  • 6% for years four to seven

For additional information, visit U.S. Department of the Treasury's page. You can also visit the Eatonton Main Street office, located in City Hall (201 N Jefferson Ave, Eatonton, GA), call 706-749-9150 to speak with the Main Street Manager, or email director@downtowneatonton.com.

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