New Market Tax Credits

Eligible Businesses

Businesses may be eligible for funding through the New Market Tax Credit Program if they are located in a community or area where the following is true:
  • The median income level is less than 80% of the area, or the State-wide median
  • Fifty percent of the business gross income originates from that location
  • A "substantial portion" (40%-50%) of your tangible property and activities are located in a low-income community

Businesses can submit their project for consideration to a Certified Development Enterprise (CDE). If it is approved, the CDE will raise funds from other businesses interested in investing in low income communities and provide them a 39% tax credit over seven years.

For a list of CDE’s in California, please click here. This is not a complete list. Please go to the Community Development Financial Institutions website for more up to date CDE’s in California, or CDE’s listed alphabetically by state and city. Information can be found under Certified CDEs.

You can also call the Fund at (202) 622-7373 to see if an organization has recently been certified or is under review.