Colorado has an exciting new program that will help our communities grow. The New Markets Tax Credit Program (NMTC), created as part of the Community Renewal Tax Relief Act of 2000, encourages private capital investment in low income communities by providing tax credits to investors.

The Colorado Housing and Finance Authority, in partnership with the City of Denver and the Colorado Enterprise Fund, formed the Colorado Growth and Revitalization (CGR) Fund LLC, to apply for NMTCs.  In 2005, the CGR Fund was awarded an allocation of $40 million.The CGR Fund partners are working closely with investors to identify and fund NMTC-eligible projects that will have significant community and economic development benefits across Colorado. The Fund will target 80% of its capital in major urban communities, and 20% in rural communities.

The purpose of the NMTC is to spur private investment in low-income urban and rural communities. The program is based on the idea that there are viable business opportunities in low-income communities and that a federal tax credit would provide attractive incentive to increase the flow of investment capital to such areas.  This investment provides much needed capital to assist in the economic revitalization of underserved communities by creating new jobs and financing small businesses.