Treasury's 2026 Tax Credit Giveaway: Investors, Line Up!
Published Date: 9/15/2026
Notice
Summary
This NOAA is issued in connection with the CY 2026 allocation round (Allocation Round) of the New Markets Tax Credit Program (NMTC Program), as authorized by Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000 (P.L. 106-554) as amended. Through the NMTC Program, the Community Development Financial Institutions Fund (CDFI Fund) provides authority to certified CDEs to offer an incentive to investors in the form of tax credits over seven years, which is expected to stimulate the provision of private investment capital that, in turn, will facilitate economic and community development in Low-Income Communities. Through this NOAA, the CDFI Fund announces the availability of $5 billion of NMTC Allocation authority in this Allocation Round. In this NOAA, the CDFI Fund specifically addresses how a CDE may apply to receive an allocation of NMTCs, the competitive procedure through which NMTC Allocations will be made and the actions that will be taken to ensure that proper allocations are made to appropriate entities.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 4 costs, 0 mixed.
$5 Billion NMTC Allocation Available
The CDFI Fund announced $5,000,000,000 of New Markets Tax Credit (NMTC) allocation authority available for the CY 2026 round. The NOAA states the CDFI Fund anticipates issuing up to $100,000,000 in tax credit investment authority to each Allocatee, and tax credits are provided to investors over seven years.
Prior Allocatees Face QEI/QLICI Thresholds
CDEs that were Allocatees in prior rounds (CY 2020 through CY 2024-2025) must meet minimum Qualified Equity Investment (QEI) issuance and Qualified Low-Income Community Investment (QLICI) thresholds by the deadlines in Table 1 to be eligible. Table 2 lists the finalized QEI requirements by prior round: CY 2020 = 100/100, CY 2021 = 90/90, CY 2022 = 80/80, CY 2023 = 60/50, CY 2024-2025 = 10/0 (percentages).
CDE Certification or Timely Application Required
To be eligible for an NMTC Allocation in the CY 2026 round, an Applicant must either be certified as a Community Development Entity (CDE) as of the NOAA's Federal Register publication date (September 15, 2026) or submit a CDE certification application through AMIS by September 22, 2026 at 11:59 p.m. ET. The CDFI Fund will not provide allocations to entities that are not certified CDEs or Subsidiary CDEs.
Nonprofits Must Control For-Profit Subsidiary
A nonprofit Applicant that intends to transfer any NMTC Allocation to Subsidiary CDEs must demonstrate control of at least one for-profit Subsidiary CDE and must submit a CDE Certification Application for a for-profit Subsidiary within 30 days after receiving allocation notification. The CDFI Fund may rescind the award if the nonprofit fails to submit the Subsidiary certification application within 30 days.
At Least 20% QLICIs to Non‑Metropolitan Counties
The CDFI Fund will endeavor to ensure that 20 percent of the Qualified Low-Income Community Investments (QLICIs) made using QEI proceeds are invested in Non‑Metropolitan counties. The NOAA also requires that the proportion of Allocatees that are Rural CDEs be at least equal to the proportion of Rural CDE Applicants in the highly qualified pool, and defines Rural CDEs with specific track-record and commitment criteria.
Limits on Using QEI Proceeds to Refinance
Applicants must commit not to allow Qualified Equity Investment (QEI) proceeds to be used to repay or refinance a debt or equity provider whose capital funded the QEI, or an Affiliate of that provider, except where: (i) proceeds repay documented reasonable expenditures directly attributable to the QALICB incurred no more than 24 months before the QLICI closing; or (ii) no more than 5 percent of total QLICI proceeds are used to repay such documented reasonable expenditures.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-13200, Funding Opportunities: Small Dollar Loan Program: FY 2026 Funding Round
The Small Dollar Loan Program is opening its FY 2026 funding round, offering $9 million to help community lenders provide small loans and support services. If you’re a community financial group, now’s your chance to apply for loan loss reserves or technical help grants, with awards ranging from $20,000 up to $350,000. Get ready—applications will be reviewed soon, and this funding can boost your ability to serve more people with affordable loans!
2026-13199, Funding Opportunities: Bank Enterprise Award Program (BEA) Program: FY 2026 Funding Round
The Bank Enterprise Award Program is offering $40 million in grants for FY 2026 to banks that help improve low-income communities. Banks can apply for awards ranging from $10,000 to $600,000, with about 180 awards expected. Don’t miss the key deadline on July 24, 2026, to submit your application and get your paperwork in order!
2026-13172, Funding Opportunities: Bond Guarantee Program, FY 2026; Notice of Guarantee Availability
The U.S. Treasury is offering up to $500 million in bond guarantees for 2026 to help community lenders raise money for local projects. If you’re a qualified issuer, you need to apply by early July to get in on this chance. This program supports community development by making it easier to fund important neighborhood improvements before the end of the year.
2026-12187, Notice of Information Collection and Request for Public Comment
The Treasury Department wants your thoughts on how it collects info for the New Markets Tax Credit Program, which helps investors support community projects. They’re aiming to keep paperwork easy and clear, so if you have ideas or concerns, speak up by August 17, 2026. This won’t cost you money but could change how info is tracked and shared.
2026-04683, Amendment of Notice of Funds Availability for Native American CDFI Assistance Program; Revised Application Submission Deadline
If you’re applying for money or help through the Native American CDFI Assistance Program, good news! The deadline to update your application has been pushed back from October 27, 2025, to April 10, 2026, because of a government funding pause. This gives applicants more time to polish their submissions and aim for those financial or technical awards.
2026-04682, Amendment of Notice of Funds Availability for Community Development Financial Institutions Program; Revised Application Submission Deadline
The deadline to update applications for the Community Development Financial Institutions Program has been extended from October 27, 2025, to April 10, 2026, because of a government funding pause. This change affects applicants who made it to the later stages of the review process and want to improve their submissions. If you’re one of these applicants, you now have more time to get your updates in and compete for financial or technical help.
Previous / Next Documents
Previous: 2026-18882, Supplemental Nutrition Assistance Program: State of Wyoming SNAP Demonstration Project
This notice invites the public to comment on the State of Wyoming's demonstration project authorized under section 17(b) of the Food and Nutrition Act of 2008, 7 U.S.C. 2026(b). The Food and Nutrition Administration (FNA) will take appropriate action as necessary in response to comments.
Next: 2026-18884, Supplemental Nutrition Assistance Program: State of Missouri SNAP Demonstration Project
This notice invites the public to comment on the State of Missouri's demonstration project authorized under section 17(b) of the Food and Nutrition Act of 2008, 7 U.S.C. 2026(b). The Food and Nutrition Administration (FNA) will take appropriate action as necessary in response to comments.