The New Markets Development Program was established to encourage capital investment in rural and urban low-income communities by allowing taxpayers to earn credits against specified taxes by investing in qualified community development entities that make qualified low-income community investments in qualified active low-income community businesses to create and retain jobs.
In May 2014, Florida Governor Rick Scott signed House Bill 5601 to increase the amount of credits available under the New Markets Development Program by $37,540,000 million.
The Department of Economic Opportunity will begin accepting applications on July 1, 2014. Applications will be reviewed in the order received. If more than one application is found to comply with section 288.9914, Florida Statutes, the tax credits available to each applicant shall be in proportion to the proposed purchase price to the total purchase price of all of the proposed investments.
Under the Florida New Markets Development Program qualified community development entities submit an application to the Department requesting approval of a proposed investment as a qualified investment. Eligible applicants include qualified community development entities that are certified by the Secretary of the United States Department of Treasury as a qualified community development entity under 26 U.S.C. s 45D; a, has entered into, or is controlled by an entity that has entered into, an allocation agreement with the Community Development Financial Institutions Fund of the United States Department of Treasury with respect to tax credits under 26 U.S.C. s 45D and is authorized to serve businesses in this state under the agreement.