The Statewide Economic Development Finance Act provides the New Mexico Finance Authority (NMFA) with broad authority to operate finance programs that stimulate economic development including the power to form, operate, own or co-own qualified Community Development Entities (CDEs) for the purposes of participating in the New Markets Tax Credit Program. In 2006 NMFA formed Finance New Mexico, LLC, a qualified CDE.
New Mexico currently has a New Markets Tax Credits allocation of $45 million for urban areas and $22 million for rural areas.
The New Mexico Finance Authority operates the NMTC program on behalf of the State of New Mexico under the guidance of its adopted New Markets Tax Credit Program Policies and Procedures, Economic Impact Policies and Lending and Credit Policies. The NMTC program was established primarily to provide greater access to financing for new, expanding or relocating businesses in underserved areas across the country. Finance New Mexico and the Finance Authority are targeting the use of allocation of tax credit incentives to add to existing statewide economic development initiatives.
Projects eligible for NMTC funding must be located in qualified Census tracts. These tracts are generally located in “highly distressed” census tracts (75% of New Mexico’s total allocation must be invested in qualified census tracts).
Characteristics of these census tracts:
To quickly check eligibility, enter the address in the Reznick Group’s NMTC Qualifying Census Tracts Mapping Tool.
Contact Juan Torres, Director of Finance Development Programs, Juan.Torres@state.nm.us or 505.827.0238.