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SDS CAPITAL GROUP
1281 Westwood Blvd., Suite 200
Los Angeles, CA 90024

(310) 914-5333

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New Markets Tax Credit Program

The New Markets Tax Credit (NMTC) program was created in 2000 to stimulate
economic growth in rural and low income communities by increasing the
availability of private capital. In return, NMTC investors – most often banks –
are provided with a tax credit equal to 39% of the total Qualified Equity
Investment (QEI) over seven-year period. This tax credit provides anywhere from
a 20% to a 25% subsidy to projects. The NMTC program was born of the Community
Renewal Tax Relief Act and is under the United States Treasury Department.


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