Details of Public Law 116-260, section 112 , New Markets Tax Credit

The new markets tax credit is equal to 39 percent of capital invested by an individual, trust, partnership, or corporation in a qualified community development entity. A qualified community development entity must serve or provide investment capital for low-income communities or persons. The credit allocations for the 2020 calendar year is $5 billion.

The provision extends the $5 billion allocations for the new markets tax credit for each of the calendar years 2021 through 2025, and extends the carryover of any unused allocations for calendar years through 2030.