The New Markets Tax Credit (“NMTC”) program was enacted by Congress in 2000 as part of the Community Renewal Tax Relief Act of 2000 and is incorporated as section 45D of the Internal Revenue Code. Generally speaking, the NMTC enables private-sector investors (e.g., banks, insurance companies, corporations, and individuals) to receive a credit against federal income taxes for making “qualified equity investments” (QEIs) in “qualified community development entities” (CDEs). Such investments are expected to create jobs and material improvements in the lives of residents of “low-income communities.” The credit is equal to 39% of the QEI and is claimed during a seven-year credit period beginning with the year in which the investment was initially made. In particular, 5% of the QEI is claimed as a credit in the year the investment was initially made and in each of the next two years. 6% of the QEI is claimed as a credit in the final four years. A taxpayer may claim the NMTC for each applicable year by completing Form 8874 and filing it with the taxpayer’s federal income tax return.