401 W. Ontario St. Suite 220
Chicago, IL 60654
Does My Project Qualify?
In order to qualify to receive New Markets Tax Credits-backed financing, developments must meet strict criteria such as:
- Be located in a Low Income Community (LIC), defined as a census tract in which the poverty rate exceeds 20%, or the median income is below 80% of the greater of the statewide median or metropolitan area median income for LICs in metropolitan census tracts.
- Or, preferably be in areas designated as areas of higher distress by the CDFI Fund including areas where the poverty rate is greater than 30%, areas where the median family income is less than 60% of the area median family income, SBA Hubzones, Brownfields Redevelopment Sites, and other areas designated for redevelopment by local or state authorities.
- Derive at least 50% of total gross income from activities in the LIC.
- A substantial portion of its tangible personal property must be used in the LIC.
- Employees must perform a substantial portion of services in the LIC.
- Less than 5% of property is attributable to collectibles and non-qualified financial property.
- Must be a retail, office, industrial, or community facility in a qualified LIC; multifamily rental properties must be mixed-use developments which include a commercial component of at least 20%.