A Path to Increasing New Markets Tax Credit Investment in Native Communities

CDFI Fund releases two industry reports and a guide for Native entities. 

Eighteen months ago, the CDFI Fund launched the NMTC Native Initiative with the goal to increase New Markets Tax Credit (NMTC) investments in NMTC Native Areas[i] . Since the NMTC Program’s inception, the CDFI Fund has recorded investments totaling over $1.8 billion[ii] in Indian Country.

As I shared in my July 2022 blog post, the NMTC Native Initiative aligns with the CDFI Fund’s Strategic Plan goals to (1) make our programs more accessible by creating on-ramps to this critically needed program and (2) to encourage increased investment into NMTC Native Areas, which would further the community economic development strategies of those communities.

Today, I’d like to share our progress on this important initiative.

As part of this initiative, we held technical workshops in September 2022 and February 2023. We also provided approximately 80 hours of direct technical assistance to several Native organizations interested in utilizing NMTCs.

In addition, today the CDFI Fund is releasing the following two reports, and a guide to assist Tribal entities that want to participate in the NMTC Program.  

In an effort to continue the collective discussion and spur additional community economic development in Indian Country through NMTC investments, the CDFI Fund and its research partners will present the findings and best practices identified in these reports and guide to various stakeholders over the coming months.

We remain committed to our mission to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers. Furthermore, with the publication of these latest reports and guide, the CDFI Fund continues to build upon its history of serving Native Communities through the NMTC Native Initiative.

[i] Federal Indian Reservations, Off-Reservation Trust Lands, Hawaiian Home Lands, and Alaska Native Village Statistical Areas are collectively referred to as NMTC Native Areas.

[ii] Includes all NMTC investments made in NMTC Native Areas, Oklahoma Tribal Statistical Areas, State Designated Tribal Statistical Areas, and Tribal Designated Statistical Areas from Fiscal Year 2004 to 2020, adjusted to 2021 dollars.