New Markets Tax Credit Program

New Markets Tax Credit Program

In 2007, with the explicit authorization of the Legislature, NMFA formed a for-profit subsidiary called Finance New Mexico, LLC, to pursue an allocation of federal tax credits available under the New Markets Tax Credit (NMTC) program. Since 2007, the US Department of Treasury has awarded Finance New Mexico, LLC five NMTC allocation awards totaling $286 million.

The purpose of the New Markets Tax Credit Program is to provide businesses in rural or low-income communities across New Mexico with greater access to capital in order to increase job creation and development activities. Under this program, Finance New Mexico leverages private capital with funds derived from the sale of tax credits to investors. The incentive to investors is a 39% federal income tax credit earned over seven years for every dollar invested in a qualified low-income community enterprise. The benefit to New Mexico businesses is very low-cost capital, with flexible lending criteria and the potential to convert portions of NMTC loans to equity.

In FY2019, Finance New Mexico closed on four NMTC transactions totaling $47 million.


Applicants: For-profit and nonprofit entities located in federally designated low-income census tracts in New Mexico
Projects: Building, equipment, and working capital
Terms: Loans of up to 40 years at below-market interest rates, with interest-only payments due for the first seven years
Other: Successful applicants must secure a primary lender that is willing to leverage its loans through the NMTC program. Funding is offered through quarterly competitive application cycles and is subject to available funding.

For more information about the New Markets Tax Credit program, email

In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington, D.C. 20220 or call (202) 622-1160.


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