Join the NAFOA Institute and Baker Tilly x Moss Adams for an educational webinar on New Market Tax Credits and unlocking capital for Native communities.

The New Markets Tax Credit (NMTC) program, administered by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, has entered a historic phase with a $10 billion double round of allocations for the 2024-2025 cycle, a 20% increase in investments and the largest funding round in program history. A total of 142 Community Development Entities (CDEs) received awards, with over $230 million specifically targeted for investments in NMTC Native Areas, reflecting a growing federal emphasis on economic development in Tribal and rural regions.

For Tribes and Tribal organizations, NMTCs represent a powerful strategy to attract private investment into community development. While Tribes generally cannot use tax credits directly, they can benefit through NMTC financing structures. Investors receive the tax credits, and the resulting capital flows (typically low-interest loans) can finance Tribal projects structured as qualified low-income community businesses, lowering overall project costs by roughly 20%.

Recent allocations highlight how Native-serving CDEs are taking the lead. Native-focused entities were major NMTC awardees in the latest round, positioning them to channel capital into Tribal economic development. This panel will discuss the ways in which Tribes can tap NMTCs for a wide range of community priorities—including healthcare facilities, childcare centers, cultural and educational centers, infrastructure, and small business development—by partnering with Native CDE leadership or developing their own CDE capacity. Panelists will also consider the accounting implications and best practices when receiving NMTCs to help realize NMTC’s potential to catalyze sustainable economic growth in Indian Country.