State NMTC Programs
Legend
State Program Enacted | |
State Program Proposed | |
No Current State Program |
The links in the map above take users to the program descriptions below, which is maintained by Novogradac & Company. We will update this list as new information becomes available. If you would like to correct or update the information listed above please email [email protected].
Alabama |
|
Program | Alabama New Markets Development Act |
Administering Agency | Alabama Department of Revenue |
Enacting Legislation | H.B. 257; Act No. 2012-483 |
Amending Legislation | Not applicable |
Related Statutes | Alabama Code Section 281-5-1 |
Expired Legislation | Not applicable |
CDE Application Process |
|
Annual State CAP Limits | $50 million |
Transaction CAP Limits | $10 million qualified low-income community investment (QLICI) per qualified active low-income community business (QALICB) |
Credit Description |
50% of the taxpayer's equity investment |
How the Credit is Claimed | Year 1: 0%, Years 2-7: 8.33% |
Credit Period (Compliance) | Seven years (same as federal) |
QALICB Requirements |
Same as federal. QALICBs are any for‐profit or nonprofit corporation or partnership if:
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Recapture |
Recapture can occur if:
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Related Documents | An Introduction the New Markets Tax Credit Program, Form ET-1; Transmittal Notice of Authorization |
Other |
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Novogradac Contact | |
State Contact |
Linda Swann |
Alaska |
|
Program | Alaska New Markets Tax Credit Assistance Guarantee and Loan Program |
Administering Agency | Alaska Industrial Development and Export Authority |
Enacting Legislation | S.B. 66 |
Amending Legislation | Not applicable |
Related Statutes | Alaska Statutes Section 44.88.700 |
Expired Legislation | Not applicable |
CDE Application Process |
AIDEA’s program has two components: Loan Guarantee The applicant must have been awarded a NMTC allocation from a community development entity (CDE), or be in the process of securing that allocation from one or more CDEs. The applicant may then apply to AIDEA for a guarantee of the leveraged loan portion of the NMTC transaction. If, and when, AIDEA issues a letter of commitment, the applicant can use it to secure a commercial loan to the transaction from an eligible financial institution. If a loan is secured, AIDEA will work with the lender to ensure the terms and conditions of the guarantee and the loan are compatible and acceptable to both parties. The guarantee will be executed at the closing of the NMTC transaction. Direct Loan AIDEA may make a loan under this program only if it determines that the applicant was unable to use AIDEA’s letter of commitment to obtain a loan from a financial institution under commercially reasonable terms. In this case, the applicant will be required to submit documentation demonstrating that at least two financial institutions have reviewed and rejected a loan application or that the application was approved but subject to terms AIDEA determines are commercially unreasonable. The application will undergo a comprehensive underwriting process in which AIDEA will determine:
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Annual State CAP Limits | $40 million |
Transaction CAP Limits | Not applicable |
Credit Description | Not applicable |
How the Credit is Claimed | Not applicable |
Credit Period (Compliance) | Seven years (same as federal) |
QALICB Requirements |
Any corporation or partnership (including nonprofits) engaged in the active conduct of a qualified business that meets all five requirements:
|
Recapture |
Not applicable |
Related Documents | Not applicable |
Other |
Only projects in qualified census tracts (QCT) are eligible for the NMTCs. QCTs are those that meet at least one of the following requirements:
|
Novogradac Contact | |
State Contact |
(907) 771-3060 |
Arkansas |
|
Program | Arkansas New Markets Jobs Act |
Administering Agency | Arkansas Economic Development Commission |
Enacting Legislation | H.B. 1832 |
Amending Legislation | Not applicable |
Related Statutes | Arkansas Code Section 15-4-36 |
Expired Legislation | Not applicable |
CDE Application Process |
|
Annual State CAP Limits | $166 million in QEI |
Transaction CAP Limits |
Not applicable |
Credit Description | 58% of the QEI |
How the Credit is Claimed | Year 0-1: 0%; Year 2-4: 12%; Year 5-6: 11%/. |
Credit Period (Compliance) | Six years |
QALICB requirements |
Same as federal |
Recapture |
Same as federal |
Related Documents | Rules and Regulations |
Other | Not applicable |
Novogradac Contact | Gregory Clements |
State Contact |
Hunter Hauk |
Florida (Repealed) |
|
Program | Florida New Markets Development Program |
Administering Agency | Florida Department of Economic Opportunity |
Enacting Legislation | S.B. 406 |
Amending Legislation | H.B. 5601, H.B. 5 |
Related Statutes | Florida Statutes Section 288.991-288.9922 |
Expired Legislation | H.B. 7087 |
CDE Application Process |
Applications due June 30, 2023, as the program was repealed as of July 1, 2023. A qualified community development entity (CDE) must submit an application to the department to approve a proposed investment as a qualified investment. The application must include:
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Annual State CAP Limits | $74.14 million |
Transaction CAP Limits | $10 million in QEI |
How the Credit is Claimed | Years 1-2: 0%, Year 3: 7%, Years 4-7: 8%. |
Credit Period (Compliance) | Seven years (Same as federal) |
QALICB Requirements |
The department, in consultation with Enterprise Florida, Inc., shall designate industries using the North American Industry Classification System which are eligible to receive low-income community investments. The designated industries must be those industries that have the greatest potential to create strong positive impacts on or benefits to the state, regional, and local economies. A qualified CDE may not make a qualified low-income community investment (QLICI) in a business unless the principal activities of the business are within an eligible industry. The department may waive this limitation if the department determines that the investment will have a positive impact on a community. |
Recapture |
Notwithstanding s. 95.091, the department shall direct the Department of Revenue, at any time before Dec. 31, 2022, to recapture all or a portion of a tax credit authorized pursuant to the New Markets Development Program Act if one or more of the following occur:
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Related Documents |
Application
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Other | Repealed as of July 1, 2023. Existing contracts and agreements before that date will continue, but no new applications will be accepted. |
Novogradac Conact | |
State Contact |
Karl Blischke
|
Georgia |
|
Program | |
Administering Agency | Georgia Department of Community Affairs |
Enacting Legislation | S.B. 133 |
Amending Legislation | |
Related Statutes | |
Expired Legislation | |
CDE Application Process |
(1) All applications shall be received on forms promulgated by the Department, with all attachments and supporting documentation required in order to be deemed complete. (2) Applications shall contain all elements required for statutory compliance, as well as any other elements required by the Department. (3) Applications will be deemed received when a paper-copy of the application is received by the Department. Applications received after 5 p.m. ET will be deemed to be received on the following business day. (4) Eligible applicants under the Georgia Agribusiness and Rural Jobs Act must apply in a format and manner prescribed by the Department. Applications must be submitted in paper-copy format to the Department at: Georgia Department of Community Affairs Georgia Agribusiness and Rural Jobs Act Program Community Development & Finance Division 60 Executive Park South, NE Atlanta, Georgia 30329-2231 |
Annual State CAP Limits | |
Transaction CAP Limits | |
Credit Description | |
How the Credit is Claimed |
(1) Upon making a capital investment in a rural fund, a rural investor earns a vested right to a credit against such entity’s Georgia state tax liability that may be used on each credit allowance date of such capital investment in an amount equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the rural fund for the capital investment. The applicable percentages that may be claimed are: Years 1 and 2, 0%; Years 3-6, 15%. (2) The amount of the credit claimed by an allocatee shall not exceed the amount of such entity’s Georgia state tax liability for the tax year for which the credit is claimed. Any amount of credit that an allocatee is prohibited from claiming in a taxable year as a result of this Code section may be carried forward for use in any subsequent taxable year. |
Credit Period (Compliance) | |
QALICB Requirements |
|
Recapture |
(a) The rural fund does not invest 100% of its capital investment authority in qualified investments in Georgia within two years of the closing date, with at least 10% of its capital investment authority initially invested in eligible businesses engaged in agribusiness as defined by the Department and at least 10% of such investment in agribusiness shall be equity investments; (b) The rural fund, after satisfying the agribusiness and equity investment requirements above, fails to maintain qualified investments equal to 100% of its capital investment authority until the fifth anniversary of the credit allowance date. Qualified investments are considered maintained if the qualified investment was sold or repaid if the rural fund reinvests an amount equal to the capital returned or recovered by the rural fund from the original investment, exclusive of any profits realized, in other qualified investments in the state of Georgia within 12 months of the receipt of such capital. Amounts received periodically by a rural fund shall be treated as continually invested in qualified investments if the amounts are reinvested in one or more qualified investments by the end of the following calendar year. A rural fund is not required to reinvest capital returned from qualified investments after the fourth anniversary of the credit allowance date, and such qualified investments shall be considered held continuously by the rural fund through the fifth anniversary of the credit allowance date; (c) Should the rural fund fail to meet the conditions of sections (a) and (b) until the fifth anniversary of the credit allowance date, the Department shall recapture credits |
Related Documents |
Georgia Chapter 110-35; Eligible counties for qualified investment in Georgia; GARJA rules |
Other | |
Novogradac Contact | |
State Contact |
Illinois |
|
Program | Illinois New Markets Development Program |
Administering Agency | Illinois Department of Commerce and Economic Opportunity |
Enacting Legislation | S.B. 2015 (Public Act 095-1024) |
Amending Legislation | S.B. 652 S.B. 1963 |
Related Statutes | 20 Illinois Compiled Statutes 663 |
Expired Legislation | Not applicable |
CDE Application Process |
|
Annual State CAP Limits | $20 million for fiscal years beginning before July 1, 2023. $25 million for fiscal years beginning July 1, 2023, and later. |
Transaction CAP Limits | $10 million in QEI |
Credit Description | 39% of the QEI |
How the Credit is Claimed | Years 1-2: 0%, Year 3: 7%, and Years 4-7: 8% |
Credit Period (Compliance) | Seven years (Same as federal) |
QALICB Requirements | Same as federal |
Recapture |
The following events cause recapture:
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Related Documents | |
Other |
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Novogradac Contact | |
State Contact |
Indiana (Proposed) |
|
Program | Indiana New Markets Tax Credit |
Administering Agency | Indiana Economic Development Corporation |
Enacting Legislation | H.B. 1455 |
Amending Legislation | |
Related Statutes | |
Expired Legislation | |
CDE Application Process | Apply to EIDC. Applications will be accepted within 30 days of the CDFI Fund’s allocation award announcement. |
Annual State CAP Limits | $50 million statewide; additional $50 million for rural counties |
Transaction CAP Limits | |
Credit Description | |
How the Credit is Claimed | Years 1-7, 6% annually |
Credit Period (Compliance) | |
QALICB Requirements | Cannot derive 15% or more of its annual revenue from rental or sale of real estate, with specific exceptions. |
Recapture | |
Related Documents | |
Other | |
Novogradac Contact | |
State Contact |
Kentucky |
|
Program | Kentucky New Markets Development Program |
Administering Agency | Kentucky Department of Revenue |
Enacting Legislation | H.B. 445 |
Amending Legislation | 103 KAR 15:180 |
Related Statutes | Kentucky Statutes Section 141.433, Kentucky Statutes Section 141.434 |
Expired Legislation | H.B. 2 |
CDE Application Process |
The department will:
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Annual State CAP Limits | $5 million |
Transaction CAP Limits | $10 million in QEI |
Credit Description | 39% of the QEI |
How the Credit is Claimed | Years 1-2: 0%, Year 3: 7%, and Years 4-7: 8% |
Credit Period (Compliance) | Seven years (same as federal) |
QALICB Requirements | Same as federal |
Recapture |
If there is an event as provided by KRS 141.433(6) that would result in the recapture of any portion of the tax credit previously approved:
|
Related Documents | Form 8874(K), Kentucky 8874(K)-A; Kentucky Private Letter Ruling KY-PLR-19-10 |
Other |
$5 million in NMTCs will be available for approval beginning with applications submitted on or after July 15, 2019. Any NMTC approved may be claimed against corporation income tax, individual income tax, limited liability entity tax, and insurance premiums tax. Any business that derives or expects to derive 15% or more of its annual revenue from the rental or sale of real estate is not considered a qualified active low-income community business (QALICB), except this restriction does not apply to a business that is controlled by or under common control with another business if the second business does not derive or expects to derive 15% or more of its annual revenue from the rental or sale of real estate, and is the primary tenant of the real estate leased from the initial business. |
Novogradac Contact | |
State Contact |
Cabinet for Economic Development |
Louisiana |
|
Program | Louisiana New Markets Jobs Act |
Administering Agency | Louisiana Department of Revenue |
Enacting Legislation | H.B. 726 |
Amending Legislation | S.B. 14, S.B. 151 |
Related Statutes | Louisiana Code Section 1911, Louisiana Code Section 1912 |
Expired Legislation | Not applicable |
CDE Application Process | Must be a CDE for federal purposes and an application must be submitted to the state, along with $500,000 refundable deposit. |
Annual State CAP Limits |
$55 million
|
Transaction CAP Limits |
$10 million cap on qualified equity investment (QEI) to any single qualified active low-income community business (QALICB)
|
Credit Description |
45% of the credits are applied toward premium tax liability, not income tax liability. Businesses affected by Hurricane Laura are automatically eligible for QEIs as of Oct. 16, 2020.
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How the Credit is Claimed | Years 1-2: 14%, Year 3-4: 8.5%, Year 5-7: 0% |
Credit Period (Compliance) |
Seven years |
QALICB Requirements | Same as federal |
Recapture |
Recapture will occur if:
|
Related Documents | FAQs, FAQs 2, Fiscal Note for H.B. 726, Revenue Information Bulletin 13-016 |
Other | The credits can be carried forward 10 years and can be transferred. |
Novogradac Contact | |
State Contact |
Department of Revenue |
Maine |
|
Program | Maine New Markets Capital Investment Tax Credit Program |
Administering Agency | Finance Authority of Maine |
Enacting Legislation | S.P. 311 |
Amending Legislation | H 1240, H.P 1293, P.L. 75 |
Related Statutes | Maine Revised Statutes 10 Section 1100-Z |
Expired Legislation | Not applicable |
CDE Application Process | Needs to be a community development entity (CDE) for federal purposes and an application needs to be submitted to the state. |
Annual State CAP Limits | Not applicable |
Transaction CAP Limits |
$10 million (Title 10, section 1100-Z, subsection 3, paragraph G) $40 million for a qualified active low-income community business (QALICB) that is a manufacturing or value-added production enterprise. |
Credit Description | 39% of the QEI |
How the Credit is Claimed | Years 1-2: 0%, Year 3: 7%, Year 4-7: 8% |
Credit Period (Compliance) | Seven years (Same as federal) |
QALICB Requirements | Same as federal |
Recapture | If any federal credits are recaptured, all of the state credits may be recaptured. |
Other | Qualified low-income community investment (QLICI) does not include a capital or equity investment made after Nov. 9, 2015, if more than 5% of the investment is used to refinance costs, expenses or investments incurred or paid by the QALICB or a party related to the QALICB before the date of the qualified low-income community investment (QLICI); make equity distributions from the QALICB to its owners; acquire an existing business or enterprise in the state; or pay transaction fees. |
Related Documents | Certification Application, Program Rule, Factsheet |
Novogradac Contact | |
State Contact |
FAME General Counsel Christopher Roney |
Minnesota (Proposed) |
|
Program | Minnesota New Markets Tax Credit |
Administering Agency | Minnesota Department of Employment and Economic Development |
Enacting Legislation | H.F. 1528 |
Amending Legislation | |
Related Statutes | |
Expired Legislation | |
CDE Application Process | Application to the commissioner on a form provided by the commissioner. |
Annual State CAP Limits | $30 million of QEI authority for greater Minnesota counties and $30 million in QEI authority for metropolitan counties. |
Transaction CAP Limits | Maximum of all QLICIs in a QALICB would be $10 million. |
Credit Description | 0% of qualified equity investment for each of first two credit allowance dates and 10% for each of the next five credit allowance dates. Greater Minnesota allocations are for non-metropolitan Minnesota counties; Metropolitan allocations are for metropolitan counties. Principal business operations require a physical location of a business where at least 60% of the QALICB’s employees work. |
How the Credit is Claimed | Qualified CDEs submit claim to the commissioner with information including the amount, structure and purchaser of the equity investment to the amount no greater than double the federal allocation authority (that limit does not apply to a Minnesota qualified CDE). |
Credit Period (Compliance) | Same as federal. |
QALICB Requirements | |
Recapture | The amount of any federal recapture, as well as other specific scenarios. |
Other | QEIs must be made by Jan. 1, 2026. |
Related Documents | |
Novogradac Contact | |
State Contact |
Mississippi |
|
Program | Manufacturing Equity Investment Tax Credit Program |
Administering Agency | Mississippi Development Authority |
Enacting Legislation | Mississippi Code Section 57-105-1 |
Amending Legislation | SB 2598; S.B. 2373; H.B. 710; H.B. 499 |
Related Statutes | Not available |
Expired Legislation | S.B. 2587; S.B. 2706 |
CDE Application Process |
|
Annual State CAP Limits | $15 million |
Transaction CAP Limits | $10 million |
Credit Description |
Credits are based on a Mississippi investment being maintained for a minimum of seven years. If all state and federal program requirements are not met, all credits may be recaptured by the Mississippi Department of Revenue. Annual program reporting requirements must be maintained as well. |
How the Credit is Claimed |
|
Credit Period (Compliance) | Seven years (same as federal) |
QALICB Requirements |
Same as federal |
Recapture |
|
Related Documents | Not available |
Other |
Sunsets July 1, 2024 Mississippi Equity Investment Tax Credits must be awarded and certified by the Mississippi Development Authority before funding. Use of credits is administered by the Mississippi Department of Revenue. |
Novogradac Contact | Rebecca Darling |
State Contact |
Mississippi Development Authority |
Nebraska |
|
Program | Nebraska New Markets Job Growth Investment Tax Credit Program |
Administering Agency | Nebraska Department of Revenue |
Enacting Legislation | L.B. 1128 |
Amending Legislation | L.B. 599, L.B. 1022, L.B. 1048, L.B. 682 |
Related Statutes | Nebraska Revenue Statutes Section 77-1101 to 77-1119; |
Expired Legislation | Not applicable |
CDE Application Process |
A community development entity (CDE) must file a Nebraska Application for Certification of Qualified Equity Investments Eligible for the New Markets Job Growth Investment Tax Credit (application) with the department to receive cash investments that qualify for the NMTC. The application must include the following:
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Annual State CAP Limits | $15 million in QEI |
Transaction CAP Limits | Not applicable |
Credit Description |
|
How the Credit is Claimed |
Year 1, 2: 0%, Year 3: 7%, Years 4-7: 8%. |
Credit Period (Compliance) | Seven years (Same as federal) |
QALICB Requirements |
Use at least 85% of the proceeds from QEI to make QLICIs in a qualified active low-income community business (QALICB) in Nebraska. |
Recapture |
Credits used will be recaptured from the taxpayer that claimed the NMTC if:
|
Related Documents | Application for Certification of QEI Eligible for the NMTC |
Other | Extended only through 2021 allocation round. |
Novogradac Contact | Brad Elphick |
State Contact |
Tom Milburn |
Nevada |
|
Program | Nevada New Markets Tax Credit Program |
Administering Agency | Nevada Department of Business and Industry |
Enacting Legislation | S.B. 357 |
Amending Legislation | A.B. 446 |
Related Statutes | Nevada Revised Statutes Section 231A |
Expired Legislation | Not applicable |
CDE Application Process |
Community development entities (CDEs) that have been certified by the federal NMTC program and Nevada is in their certified area are eligible to apply for the state NMTC program. The state application will be a two-part process:
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Annual State CAP Limits | $200 million in QEI |
Transaction CAP Limits | $50 million in QEI |
Credit Description | 58% of the QEI |
How the Credit is Claimed |
Years 1-2: 0%, Years 3-5: 12%, Years 6-7: 11% |
Credit Period (Compliance) | Seven years (Same as federal) |
QALICB Requirements |
|
Recapture |
The following events cause recapture:
|
Related Documents | |
Other | Not applicable |
Novogradac Contact | Brad Elphick |
State Contact | Director’s Office, Nevada Dept. of Business and Industry Las Vegas - (702) 486-2750 Carson City - (775) 684-2999 Email: [email protected] |
Ohio |
|
Program | Ohio New Markets Tax Credit Program |
Administering Agency | Ohio Department of Development |
Enacting Legislation | H.B. 1 Section 101.01 |
Amending Legislation | H.B. 182 |
Related Statutes | Ohio Revised Statutes Section 5725.33, Ohio Administrative Code Chapter 122:22 |
Expired Legislation | Not applicable |
CDE Application Process | Needs to be a community development entity (CDE) for federal purposes with a service area including any portion of the state of Ohio. |
Annual State CAP Limits | $10 million |
Transaction CAP Limits | $1 million |
Credit Description | 39% of the QEI |
How the Credit is Claimed | Years 1-2: 0%, Years 3: 7%, Years 4-7: 8% |
Credit Period (Compliance) | Seven years (same as federal) |
QALICB Requirements | Similar to federal. |
Recapture |
The following events cause recapture:
|
Related Documents | |
Other |
|
Novogradac Contact |
Annette Stevenson |
State Contact |
John Werkman |
Utah |
|
Program | Utah Small Business Jobs Act |
Administering Agency | Utah Governor's Office of Economic Development |
Enacting Legislation | S.B. 233 |
Amending Legislation | Not applicable |
Related Statutes | Not applicable |
Expired Legislation | Not applicable |
CDE Application Process |
|
Annual State CAP Limits | $50 million in QEI |
Transaction CAP Limits |
$4 million |
Credit Description |
58% of QEI. |
How the Credit is Claimed |
Year 0-2: 0%, Year 3-5: 12% annually, Year 6-7: 11% annually |
Credit Period (Compliance) | Seven Years |
QALICB Requirements | Same as federal, with additional requirement that business must meet size eligibility established by the United States Small Business Administration as defined in 13 C.F.R. Sec.121.101-201 |
Recapture |
For the purposes of recapture, the office interprets the requirement to invest 85% of the purchase price of the qualified equity investment as follows:
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Other |
|
Related Documents | New capital requirement: QALICB cannot own, or have the right to acquire ownership in the CDE issuing the QEIs. Additionally, the QALICB cannot loan or invest the QEI back into the CDE issuing the QEIs. 150% investment requirement: A QEI is certified until the seventh credit allowance date, or when the CDE has used the proceeds from the initial QEI to invest in QALICBs such that the new QEIs exceed 150% of the original QEI. |
Novogradac Contact | |
State Contact |
Governor's Office of Economic Development |
West Virginia (Proposed) |
|
Program | West Virginia New Markets Jobs Tax Credit |
Administering Agency | West Virginia Economic Development Authority |
Enacting Legislation | S.B. 95 |
Amending Legislation | |
Related Statutes | |
Expired Legislation | |
CDE Application Process | |
Annual State CAP Limits | $60 million in QEIs |
Transaction CAP Limits | $5 million in QEIs per QALICB |
Credit Description | Years 1-3: 0%; Years 4-7: 15% each. For qualified equity investments in West Virginia only. |
How the Credit is Claimed | CDEs that receive federal NMTC allocation indicating QEI request, amount of QEI planned to be designated for federal NMTC; business plan including a revenue impact assessment projecting state and local tax revenue to generated by QLICIs. State NMTCs awarded on first-come, first-served basis. |
Credit Period (Compliance) | Seven years. |
QALICB Requirements | |
Recapture | |
Other | Reporting required on the number of new annual jobs that are Tier 1 jobs and $50,000; the number that are Tier 2 jobs and $40,000, plus further reporting. |
Related Documents | |
Novogradac Contact | |
State Contact |