At True Mountain Capital, we understand that determining New Markets Tax Credit (NMTC) eligibility can be a complex and time-consuming process. That's why we're excited to introduce our new NMTC Eligibility Mapping Tool, designed to streamline this process and provide you with accurate, up-to-date information at your fingertips.

Why We Created the NMTC Eligibility Mapping Tool

Our mission has always been to support community development and investment in underserved areas. The NMTC Eligibility Tool is a significant step toward that goal. By providing a user-friendly, efficient, and accurate way to check NMTC eligibility, we're making it easier for developers, planners, and investors to bring their projects to fruition.

Key Features of the NMTC Eligibility Mapping Tool

1. User-Friendly Interface

We designed the tool with simplicity in mind. Whether you're a seasoned developer or new to the NMTC program, our intuitive interface ensures you can easily enter information and get the results you need.

2. Comprehensive Data Integration

The tool uses the most recent data from the Community Development Financial Institutions (CDFI) fund and the 2020 US Census American Community Survey (ACS). This ensures that our eligibility assessments are based on the latest information, giving you confidence in the results.

3. Instant Results

Time is of the essence in community development projects. Our tool provides immediate results, so you can quickly determine if your area qualifies for NMTC incentives and move forward with your plans.

4. Detailed Reporting

Transparency and documentation are key in any project. Our tool generates detailed reports that outline the specific criteria and data points used in the eligibility determination. This can be crucial for securing funding and support.

5. Interactive Map Visualization:

Understanding the geographic distribution of NMTC-eligible areas is easier with our interactive map. It visually displays eligible and non-eligible zones, helping you make informed decisions about where to focus your efforts.

How to Use the NMTC Eligibility Mapping Tool

Using our tool is straightforward and efficient. Here’s how you can determine NMTC eligibility for your potential NMTC project:

Step 1: Access the Tool

Visit our website and navigate to the NMTC Eligibility Tool at https://truemountaincapital.com/explore/nmtc/eligibility-tool/.

Press the “Get Started” button on the right.

Step 2: Enter Address Information

Input the address for the area you’re interested in. Just type in the full address to specify the location.

Step 3: Submit the Information

Click the "Check Eligibility" button to submit your information. Our tool will analyze the data and automatically select the matching 2020 census tract used to determine eligibility.

Step 4: Review the Results

The tool will display whether the area is eligible for NMTC incentives. If it is, you will receive a report outlining the demographic and economic factors considered in the determination. This report can be shared with stakeholders or used in your project planning documentation. 

The Benefits of Our NMTC Eligibility Mapping Tool

• Efficiency: Quickly determine NMTC eligibility without the need for complex manual calculations.
• Accuracy: Rely on up-to-date CDFI and ACS data for precise results.
• Accessibility: Our online tool is available 24/7, allowing you to check eligibility at your convenience.
• Clarity: Detailed reports provide transparency into the eligibility determination process, supporting your project’s credibility and planning efforts.

At True Mountain Capital, we’re committed to supporting community development and investment in underserved areas. Our NMTC Eligibility Tool is a powerful resource that simplifies the eligibility determination process and provides detailed, accurate results. We invite you to explore the tool today and see how it can help unlock the potential of NMTC incentives for your next project.  If you have an eligible project, please contact us at True Mountain Capital to help us guide you thru the NMTC funding process.

Thank you for choosing True Mountain Capital as your partner in community development. Together, we can make a difference.

Let’s now look at reports by State for the NMTC (New Market Tax Credits) program to determine where the highest needs are.    NMTC program eligibility is based on demographic data from the 2020 American Community Survey published by the US Census.  This is a five-year survey covering the years 2016 to 2020.

The Community Development Financial Institutions (CDFI) fund has created a spreadsheet to analyze the ACS demographic data by census tract.    This spreadsheet can be obtained at the following link:

CDFI Fund Spreadsheet Download

This spreadsheet indicates that of the 85,395 census tracts in the country there at 35,167 tracts that qualify as a Low Income Community (LIC) for the NMTC program.   This is an overall eligibility rate of 41.18%.   Your project must be in one of these eligible tracts to be considered for NMTC funding.   You can determine what census tract your project is in using the free True Mountain Capital NMTC Eligibility Tool.

Organizing this data by state ranked by the total number of eligible count census tracts leads to the following Top 10 Report

As you can see ranking this way puts an emphasis on the largest states.   The ranking by the state percentage of eligible tracts which follows may be a better indicator of need.

Tracts that are classified as having “Severe Distress” have a greater probability of funding for the NMTC program.  These are tracts that have a designation of “Eligible with Severe Distress”, “Eligible with Severe Distress and Non-Metropolitan”, “Eligible and Non-Metropolitan” by True Mountain.   Looking at the Top 10 ranking by the % of Severe Distress leads to the following :

A spreadsheet which covers all 50 states with the underlying data can be found at:

State NMTC Report.xlsx (21.96 kb)

Please note that NMTC Eligibility is not a guarantee of funding.   Many other factors must be considered for success.   Feel free to contact us at True Mountain Capital for additional information.

At True Mountain Capital, we look at eligibility criteria beyond just meeting the minimum required for the New Markets Tax Credit (NMTC) program.  Census tracts that show significant economic distress or are in rural areas will have higher priority of funding.  Currently, the 2020 American Community Survey by the US Census is used to determine eligibility which considers data over the 5 year from 2016 to 2020.

Base Eligibility for New Markets Tax Credits

To be eligible for NMTC Allocation, a project must be located within, or provide the majority of its services in, a Qualified Census Tract, which is a census tract with:

1. Poverty Rate: The poverty rate of the census tract must be 20% or higher
2. Income Levels: The median family income (MFI) must be at or below 80% of the statewide median family income

Severe Distress Criteria

A census tract is considered to be "Severely Distressed" if it exhibits particularly acute signs of economic hardship. The criteria used to define severe distress are more stringent than those used for base eligibility under the NMTC eligibility guidelines. Here are the key criteria evaluated for severe distress:

1. Poverty Rate: The poverty rate of the census tract must be 30% or higher.
2. Income Levels: The median family income (MFI) must be at or below 60% of the area median income (AMI) or the statewide median, whichever is greater.
3. Unemployment Rate: The unemployment rate in the census tract must be at least 1.5 times the national average.

Tracts meeting any of these Severely Distressed criteria are considered highly challenged economically and are therefore prioritized for investment under the NMTC program to spur economic development and revitalization.

Eligibility for Non-Metropolitan Tracts:

Non-metropolitan tracts are census tracts located in regions that are not classified as part of Metropolitan Statistical Areas (MSAs). These areas are typically rural and might not have the high population densities seen in urban areas. Non-metropolitan status is a significant factor in evaluating eligibility for the New Markets Tax Credit (NMTC) program, as the program aims to encourage investment in both urban and rural underserved communities. 

By incorporating non-metropolitan tracts into the eligibility criteria, the NMTC program ensures a broader and more equitable distribution of development efforts, aiming to uplift communities that might otherwise be overlooked in economic development strategies. This approach helps to balance the focus between urban and rural development needs.

Areas of Higher Distress

If a project is in a census tract that is eligible but not in severe distress or non-metropolitan area, then other factors can be considered, to the extent the project directly addresses those other factors present in the Census Tract.  These include but are not limited to:

1. 25/70/1.25 Criteria- Census tracts with one of the following: (i) poverty rates greater than 25%; or (ii) if located within a non-Metropolitan Area, median family income that does not exceed 70% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 70% of the greater of the statewide median family income or the Metropolitan Area median family income; or (iii) unemployment rates at least 1.25 times the national average
2. Small Business Administration (SBA) HUB Zones
3. Brownfield sites as designated by the (EPA) Environmental Protection Agency
4. Federally designated as Native American or Alaskan Native areas, Hawaiian Homelands
5. Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority
6. Colonias areas as designated by the U.S. Department of Housing and Urban Development
7. Federally designated medically underserved areas
8. Federally designated Opportunity Zones and Enterprise zones
9. Census tracts identified as Food Deserts under the HFFI definition (USDAERS
10. Counties for which the Federal Emergency Management Agency (FEMA) has issued a “major disaster declaration” within the last 36 months.

True Mountain Capital Eligibility Categories.

Given the above, True Mountain Capital designates both census tracts and proposed projects in the following categories.

1. Eligible with Severe Distress
2. Eligible and Non-Metropolitan
3. Eligible with Severe Distress and Non-Metropolitan
4. Eligible Area of Higher Distress
5. Eligible
6. Not Eligible

These categories help to ensure that the NMTC program targets resources towards the communities that need them the most, promoting equitable economic development across various regions.  For guidance on the qualification factors for your project feel free to contact us at True Mountain Capital