New Markets Tax Credit (NMTC)

NMTC projects involve real estate construction and rehabilitation, capital, equipment and operating funds for both nonprofit and for-profit organizations. The goal of the program is to encourage private capital investment in underserved urban and rural communities.

What we do

We invest in NMTCs to fund projects, then assist with all aspects of the financial transaction and regulatory compliance. We can act as a:

  • Tax credit investor through Community Development Entities
  • Tax credit aggregator
  • Tax credit provider (on a limited basis)

Types of projects

NMTCs work best with well-defined eligible projects that bring tangible benefits to distressed communities. Examples of qualifying projects include:

  • Community facilities such as charter schools, health centers and childcare centers
  • Transit-related developments, grocery stores and neighborhood retail stores
  • Many other projects that create jobs in communities of need


Projects must be in a Qualifying Census Tract in a highly distressed area and meet at least one of these criteria:

  • Poverty rate above 30%
  • Area’s median income is less than 60% of benchmark
  • Area’s unemployment rate is at least 1.5 times the national average

Historic Tax Credit (HTC)

NMTCs can be combined with federal and state HTCs, which encourage private-sector investments to restore and re-use historic buildings. These projects preserve our nation's history and serve as a local economic engine, bringing new affordable housing, amenities and employment opportunities to communities in need.

What we do

We use our expertise in state and federal HTC investments to help you restore and preserve historic properties in your community.

Property types

Historic Tax Credits can come from federal or state governments and can be used to rehabilitate a range of properties, such as multi-family housing, certified historic structures, office buildings, community facilities and more.

Types of solutions

U.S. Bancorp Impact Finance can tailor solutions to your needs and goals. Talk to us about direct federal HTC equity investments, direct state HTC equity investments (available in certain states) and other financing types to move your project forward.

A hardhat sitting on a workbench.

Close funding gaps by combining NMTC and HTC.

Certain situations may allow for combining New Markets Tax Credits with Historic Tax Credits. This process, sometimes referred to as “twinning”, can allow you to raise additional equity for your project.

You can discuss this specialized approach with our team to determine if your project qualifies and whether twinning would be advantageous to you.

A group of Black community leaders standing on the steps of a public school that was re-opened as a community center thanks to tax credit financing

Tax credits and equity investments make a real impact.

U.S. Bank was among the investors who helped fund the Tate Etienne and Prevost Center (TEP Center) in New Orleans. The Center is a mixed-use facility offering affordable housing for seniors and the Lower Ninth Ward Living Museum.

The historic building was formerly the McDonogh 19 Elementary School, a place that played a pivotal role in school desegregation during the civil rights movement.

FAQ about New Markets Tax Credits and Historic Tax Credits

Additional financing and tax credit options.

Two electrical workers installing solar panels

Environmental finance

We offer a full suite of products and services, including tax credit financing. Renewable Energy Tax Credits (RETC) help provide clean energy options to our nation's homes, towns and businesses. Solar, wind and other types of projects are not only good for the environment, they also create jobs for local communities.

Photo of contracters looking at building plans

Affordable housing

Low Income Housing Tax Credits (LIHTC) offer federal subsidies that help finance the construction and renovation of low-income rental housing. Our platform provides affordable housing lending to bring safe and affordable housing to those who need it most.

Group of five diverse people around table, two of them shaking hands.

Tax credit syndication

Meet your financial goals while generating positive social or environmental benefits. We pair qualified investors seeking attractive after-tax returns with customized state and federal tax credit investment portfolios. These new and vital sources of capital stimulate community and economic development projects.

Contact our tax credit financing experts.

U.S. Bancorp Impact Finance has expertise spanning all types of tax credit financing. Reach out to our team to discuss how we can help support your organization and community.

Start of disclosure content

Investment products and services are:
Not a deposit • Not FDIC insured • May lose value • Not bank guaranteed • Not insured by any federal government agency

Deposit products are offered by U.S. Bank National Association. Member FDIC. All credit products offered by U.S. Bank National Association are subject to normal credit approval and program guidelines. Eligibility requirements, other fees and conditions may apply. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.

Financing maximums and terms are determined by borrower qualifications and use of funds. For deferred payments, interest accrues and is amortized over the remaining balance and term.

U.S. Bank is not a tax or legal advisor. When it is appropriate, you are encouraged to seek professional tax and/or legal advice.