The U.S. Department of the Treasury has announced New Markets Tax Credit (NMTC) awards aimed at encouraging economic growth in the United States. This announcement includes a double round of awards covering both 2024 and 2025.
Secretary Scott K.H. Bessent stated, “Under President Trump’s leadership, the One Big Beautiful Bill made the NMTC program permanent. Investors, businesses, and communities now have the long-term certainty they need to plan ahead. With the NMTC program now permanent, it is imperative that these federal incentives are focused on lasting job creation rather than the latest political trends.”
Treasury officials also outlined new reforms for the NMTC program intended to focus resources on community revitalization efforts and ensure that awardees comply with federal anti-discrimination laws. The Community Development Financial Institutions (CDFI) Fund within Treasury will update allocation agreements to reinforce permitted uses of tax credits and improve oversight of awardee compliance with executive orders and legal requirements. The department indicated it may take actions such as decertification or recapture of funds if recipients fail to meet requirements.
This year’s NMTC allocations feature a 20 percent increase in investments directed toward rural and non-metro areas. These funds are expected to support projects including rural hospitals, small businesses, domestic manufacturing facilities, and initiatives that create jobs.
Treasury said future reforms would continue to center on measurable outcomes aligned with the core mission of community revitalization rather than what it described as “ideological experimentation.” For upcoming funding cycles, priorities include affordable housing development, small business expansion, manufacturing projects that produce reliable employment opportunities, and improvements in rural healthcare infrastructure.
