Oregon New Markets Tax Credit
The Oregon Low Income Community Jobs Initiative (Oregon New Markets Tax Credit, or NMTC) program:
- Helps finance investments and create jobs in low-income communities
- Delivers below-market-rate investment options to Oregon businesses
- Attracts additional Federal New Markets Tax Credit investments in Oregon
- Sparks revitalization in Oregon's low-income communities
Community Development Entities (CDEs) serving Oregon that have been allocated Federal New Markets Tax Credits may apply. The Oregon new markets tax credits are then provided to investors who make qualified equity investments in community development entities that in turn invest in projects located in low-income communities.
Tax Credit Structure
The tax credits are realized over the course of seven years. The total tax credit is calculated as 39% of the total qualified investment. The qualified investment amount is not to exceed $8 million per project or $3.12 million in tax credits per project.
- 0% for years 1 and 2
- 7% for year 3
- 8% for years 4, 5, 6 and 7
Investments can only be made in qualified, existing low-income community businesses located in Oregon as defined by section 45D of the Internal Revenue Code. These are census tracts that have a poverty rate of 20% or more, or the median family income is below 80%, the greater of: (a) statewide median family income or (b) metropolitan median family income.
How to Apply
Multiple projects can be included in one application. The application and project forms are available from the Program Resources box on the right. Applications will be accepted on a first-come, first-serve basis until $200 million of allocation is awarded.
A $20,000 non-refundable application fee from the Community Development Entity is due when the application is submitted.
An annual evaluation fee of $1,000 per qualified equity investment is due each year with the submission of the annual report which is typically required for seven years after the initial credit allocation.
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