Treasury opens a $5 billion New Markets Tax Credit allocation round

The Treasury Department's Community Development Financial Institutions Fund opened a $5 billion New Markets Tax Credit allocation round for 2026.

Certified community development entities can seek authority to offer federal income tax credits to investors over seven years. That capital is then directed toward qualifying investments in low-income communities. The fund anticipates a maximum allocation of $100 million per recipient, although it retains discretion to award more, according to the notice.

Applicants must register by October 6 at 5 p.m. Eastern. Completed allocation applications are due November 10 at 5 p.m. Eastern. The $5 billion is allocation authority, not a direct grant or an immediate federal expenditure.