It aims to stimulate business and real estate investment in low-income communities in the United States via a federal tax credit.
The goal of the program is to stimulate regeneration of low-income and impoverished communities across the United States.
[1] The concept of the NMTC emerged in the late 1990s, when numerous foundations and think tanks were promoting the idea of using business-oriented mechanisms to help bring jobs and prosperity to disadvantaged communities.
The American Assembly disseminated the final report widely, including to the White House and Congress.
Vice President Al Gore, supporting the conference's conclusions, stated that "the greatest untapped markets in the world are right here at home, in our distressed communities.
In 2001, the first year of the program, the CDFI Fund awarded $1 billion in allocation authority to CDEs, enabling them to raise $1 billion in QEIs from investors, which allowed those investors to reduce their federal tax liability by $390 million, 39% of the amount they invested in the CDEs over seven years.
Senators Jay Rockefeller (D-West Virginia) and Roy Blunt (R-Missouri) introduced S.B.