Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
Attracts private investment into low-income communities by allowing investors to receive a 39% federal tax credit over 7 years on investments made through certified Community Development Entities (CDEs).
Do I qualify?
Answer the questions below to get an instant self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.Investment must be made through a Treasury-certified Community Development Entity (CDE)
2.Proceeds must be deployed into qualifying businesses or real estate in low-income census tracts
3.Credit: 5% per year for first 3 years, 6% per year for next 4 years = 39% total
4.Qualifying businesses: operating in low-income communities, not in excluded industries
5.CDEs apply for allocation authority through CDFI Fund competitive round
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