Today, the CDFI Fund released public data and a summary report with respect to New Markets Tax Credits investments made through FY2012. The data show that a majority of NMTC investments, over $16 billion through the ten year period analyzed, have been made in businesses where the principal activity is the development or leasing of real estate, while operating businesses received over $14 billion during the same period. The total amount of NMTC investments made peaked in FY2011, with an annual investment of over $5 billion.
CDEs making NMTC investments continue to target areas of higher distress, with all 87 allocatees in the latest (CY2013) allocation round committing to devote at least 75% of their investment authority to areas of higher distress. Through fiscal year 2012, nearly 73 percent of projects were located in areas that meet at least one of three indicators of “severe distress”: (1) poverty rates of 30% or greater; (2) median family income at or below 60% of the area median income; or (3) unemployment rates at least 1.5 times the national average. Projects located in census tracts with all three indicators of “severe distress” received over $7.5 billion of NMTC investments. The summary report and public data file may be found here.