Commercial Real Estate:
New Markets Tax Credit
TRF’s NMTC program funds community and economic development projects in low-income areas. Leveraging private-sector equity and loan capital investment, the NMTC program helps finance community development projects, stimulate economic growth and create jobs in areas that most need it.
The following are examples of projects TRF has funded through the NMTC program:
- new mixed-use development that combines retail and residential units, at the edge of the University of Pennsylvania campus in Philadelphia.
- new mixed-use development that combines retail and residential units by North Philadelphia's Temple University.
- charter school in New Jersey
Learn more about TRF’s NMTC projects.
The NMTC Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments supporting certain business activities in low-income communities. The credit provided to the investor totals 39 percent of the initial value of the investment and is claimed over a seven-year credit allowance period.
TRF received a $38.5 million New Markets Tax Credit (NMTC) allocation from U.S. Department of the Treasury in 2004, to fund community and economic development projects in low-income areas in Southeastern Pennsylvania, Central and Southern New Jersey, and Northern Delaware.
TRF also received a $75 million NMTC allocation in the 2006 round. TRF used this NMTC allocation to provide a combination of debt and equity to three project types: charter schools in highly distressed areas in the mid-Atlantic region, full service supermarkets in highly distressed areas of Pennsylvania, and other commercial and mixed use developments in highly distressed communities in the mid-Atlantic region.
For more information about TRF's NMTC program, contact NMTC@trfund.com.