New Markets Tax Credit Programs Explained

CONCORD, NH — Dodd Griffith, a business and taxation attorney with Gallagher, Callahan and Gartrell, PC, presented recently on the topic of “New Markets Tax Credits as an Incentive to Redevelopment” to the New Hampshire Association of Assessing Officials. Attorney Griffith discussed the complexities of the New Markets Tax Credit including the eligibility requirements and the benefits to program participants including banks, investors, developers, and communities. His presentation covers many of the details of the New Markets Tax Credit program, including:

What is the New Markets Tax Credit?

• A federal tax credit program
• Managed by the Community Development Financial Institutions (CDFI) Fund of the U.S. Treasury Department
• Is designed to stimulate investments in qualified businesses located in low income communities.

What is tax credit offered to investors?

• The tax credit equals 39% of a qualifying investment
• Is earned over a 7-year period
• The investor receives a tax credit equal to 5% of the original investment amount in each of the first three years
• The investor receives a tax credit equal to 6% of the original investment amount in each of the final four years.

For more information, the entire presentation can be downloaded from the attorney's webpage.