Treasury's Yearly Tax Credit Handout for Poor Neighborhoods Opens
Published Date: 9/15/2026
Notice
Summary
The Treasury Department is opening the 2026 round for the New Markets Tax Credit program, which helps boost investments in low-income communities. Community Development Entities (CDEs) can apply for funding and certifications starting now, with key deadlines in September, October, and November 2026. This is a big chance to get tax credits and invest millions into neighborhoods that need it most!
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.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-20040, Agency Information Collection Activities; Proposed Collection; Comment Request; Annual Certification and Data Collection Report Form and Abbreviated Transaction Level Report
The Treasury’s CDFI Fund wants to make sure certified community banks and applicants keep sharing important info through their Annual Certification and Transaction Reports. They’re asking for public feedback by November 30, 2026, to keep these forms clear and easy. This helps support banks that serve neighborhoods often ignored by big banks, with no new fees or big changes planned.
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