The U.S. Department of Treasury has designated HCRC as a Community Development Financial Institution (CDFI) and a Community Development Entity (CDE). As a CDE, HCRC is eligible to apply for New Markets Tax Credit Allocations. As such, HCRC has submitted an application for an allocation in the CDFI Fund's 2011 Round.
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years).