Since the mid-1980s, tax credits have offered an incentive for the private investment community in the U.S. to put more of its funds into projects where the returns, measured in human capital as well as dollars, are likely to be the greatest.

 

In December 2000, Congress enacted the New Markets Tax Credit (NMTC) as part of the Community Renewal Tax Relief Act, in response to the reality that not all communities were benefiting from the nation's economic growth. The NMTC will spur $15 billion in business investments over the next seven years, impacting low-income communities throughout the nation.  The U.S. Treasury Department's Community Development Financial Institutions Fund, the administrator of NMTC, will be making its first allocation of up to $2.5 billion in credits in 2003.  

 

Impact Seven, Inc. is the only qualifying Community Development Entity in Wisconsin to have received New Markets Tax Credit Allocations.  For the inaugural round of applications, Impact Seven, Inc. received a $21 million allocation of NMTC, which it will exchange for cash investments from private equity investors.  It will use this capital to make loans and investments in businesses located in qualified census tracts throughout Wisconsin, creating jobs and additional community development.  Investors will expect a fair return along with the tax credit on their investment.

To find out more about how New Markets Tax Credits can work for you, please choose the appropriate selection from the menu below.

 

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