New Market Tax Credits

Since 2005, over $700 million has been invested in Rexburg in real estate projects alone. Much of this investment has been related to the expansion of Brigham Young University-Idaho (BYU-Idaho), though significant investment has been made outside the university. In 2013 alone, over $100 million is being spent in new-construction, infill or redevelopment.

Because of the preponderance of full-time students residing in Rexburg, much of Rexburg's city proper has been classified by the U.S. Census Bureau as low income.

The U.S. Treasury's New Markets Tax Credit Program (NMTC Program) was established by Congress to spur new or increased investments into operating businesses and real estate projects located in low-income communities.

ABOUT NEW MARKETS

The US Treasury's New Markets Tax Credit program (NMTC), began in 2000, can help spur economic development activity in low-income communities. As in Rexburg, these economically disadvantaged communities often have good, viable business and economic development opportunities but, at first glance, may have fewer options for capital. The NMTC addresses this capital gap by providing the incentive of a Federal tax credit to individuals or corporations that invest in Community Development Entities, CDEs, working in these communities. The NMTC is another tool available to businesses and individuals interested in investing in Rexburg.

Rexburg is partnering with the Montana CDC to use NMTC to help fund operating business expansions and real estate redevelopment. With the help of the Montana CDC your business may be able to use the tax credits to fund projects within Rexburg.

NEW MARKETS CHECKLIST

Criteria for NMTC Projects

  1. Project is located in a Low-Income Census Tract
  2. Project has high community impact
  3. Total project cost exceeds $4.0 million
  4. At least 20% of income from the completed project will come from commercial use (nonresidential)
  5. The project will not be sold for at least 7 years