Community Development Entity
CityWide affiliate, Dayton Region New Market Fund, LLC, holds the U.S. Treasury Department’s designation as a Community Development Entity (CDE). This designation allows Dayton Region to apply to the Treasury’s Community Development Financial Institution Fund to receive a New Markets Tax Credit (NMTC) allocation.
The NMTC Program provides tax credit incentives to investors for equity investments in CDEs, which support high-impact investments in low-income communities. Historically, low-income communities experience a lack of investment, as evidenced by vacant commercial properties, outdated manufacturing facilities, and inadequate access to education and healthcare service providers. The NMTC Program aims to break this cycle of disinvestment by attracting the private investment necessary to reinvigorate struggling local economies.
The NMTC Program attracts private capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making investments in specialized financial intermediaries like Dayton Region New Mark Fund, LLC. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years.