The De-Gentrification of New Markets Tax Credits


This article provides the most comprehensive analysis to date of the New Markets Tax Credits program established by Congress. The purpose of the NMTCs is to use tax credits as incentives for investors to provide equity funds into low income areas. The article reveals that over $2 billion of federal tax subsidies that have been allocated to gentrified projects for the wealthy, rather than the intended beneficiaries – low income residents in the urban core – as Congress intended. The article proposes amendments to the statute and regulations to close unintended loopholes.


Bankruptcy Law | Civil Rights and Discrimination | Economics | Land Use Law | Law and Economics | Taxation-Federal | Tax Law

Date of this Version

November 2006