Contact

312-664-5656

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%.