New Markets Tax Credit

The New Markets Tax Credit program exists to create investment into urban and rural low-income areas to help finance community development projects, stimulate economic growth and create jobs. Private-sector investors receive credit against federal income taxes. The program allows individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in Community Development Entities (CDEs).

General information:

• Equity investments in low- to moderate-income areas may qualify for a 39 percent federal tax credit available through a special federal allocation for the Louisiana GO Zone.
• Qualifying projects may leverage the federal program through an additional 25 percent state tax credit (64 percent total credit. 
• May be used as equity for debt financing. 
• Contact local community development entities for allocations.

 
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