New Market Tax Credits

The Federal New Market Tax Credits Program (NMTC) is available in Portsmouth. Through the NMTC program individual and corporate investors can invest in the renaissance of Portsmouth and receive a tax credit against their federal income tax liability. By making equity investments in specialized financial institutions called Community Development Entities (CDEs) investors receive credits totaling 39% of their original investment over the course of seven years. In turn, the CDEs use the investments to make loans to businesses to construct, renovate, and/or expand in Portsmouth’s designated Census tracts. These loans are on more favorable terms than a business could expect to receive commercially due to the subsidy of the NMTC.

This program has been highly effective throughout the nation at creating jobs, expanding businesses, finding new uses for existing structures, and bringing new, mixed-use development to aging communities. It gives a needed influx of flexible funding options to Portsmouth businesses while benefiting investors through tax credits and additional financial returns.

For more information, contact a Community Development Entity (CDE). 

Local CDEs include:
  • Hampton Roads Ventures (757) 531-7161
  • Or visit the CDFI FUND website