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NMTC Double Round of Financing: A Permanent Pathway to Community Investment

Article

August 25, 2025

Following the passage of the P.L. 119-21, 2025 budget reconciliation bill (H.R.1), signed into law on July 4, 2025, the New Markets Tax Credits (NMTC) program is now a permanent fixture in federal economic development policy.

This legislation provides long-term certainty for organizations seeking NMTC financing and reinforces federal support for community investment initiatives. The permanent extension under P.L. 119-21 came just in time, as the NMTC double round of $10 billion expected to be announced this fall was a combination of 2024 and 2025 allocation authority — the last rounds authorized prior to the 2025 tax reform bill.

What NMTC Double Round Means for Community Development Entities

As the highly anticipated $10 billion NMTC double round of financing approaches, there is a unique opportunity to secure federal tax credits while driving economic growth in low-income communities, through investment in real estate development, manufacturing facilities and nonprofit funding opportunities.

This special double round significantly amplifies funding potential available to flow into low-income communities that often lack access to traditional financing sources or experience gaps in funding caused by lower property values.

With heightened demand, early preparation is essential for community development entities (CDEs) aiming to capitalize on this opportunity. For organizations that qualify and strategically approach the NMTC lenders aligned with their project, the advantages can be substantial, with funding up to 20% of project costs. The question stands: is your business ready to seize this moment?

Who Can Benefit From NMTC Double Round Financing?

This double round presents a valuable funding opportunity for a wide range of groups, including:

Real estate developers focused on revitalizing economically distressed areas
Businesses in low-income communities — particularly in healthcare services and industrial manufacturing — looking to expand operations, create jobs or improve facilities
Nonprofit organizations and social enterprises aiming to fund essential services for underserved populations

Strategic NMTC Considerations for CDEs

To determine whether NMTC financing aligns with your goals, consider the following:

Eligibility and Project Fit: Does your organization operate in, or plan to develop projects within, qualified low-income communities?
Alignment With Priorities: How could NMTC financing support your organization’s growth, capital structure, or mission-driven goals?
Awareness and Timing: Are you up to date on the expanded allocation authority and the competitive landscape of the 2024 – 2025 round?
Readiness to Apply: Do you have a well-developed approach to submit a timely and compelling application?
Community Outcomes: What role will your project play in expanding opportunities and addressing needs in the communities you serve?

Take Action: Preparing for the Double Round

NMTC double round provides a powerful opportunity to access substantial funding while supporting long-term community impact. Being informed, prepared and aligned with program goals can strengthen your ability to secure an allocation.

Your Guide Forward

Cherry Bekaert’s Strategic Financing Services team works with projects seeking funding, CDEs and other stakeholders to navigate the NMTC process, evaluate project fit and prepare for the upcoming double round of allocations. We’re available to support your next steps in pursuing this important source of funding.

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