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.