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Community Development Entity (CDE)
In order to receive an allocation under the NMTC Program, an organization must be certified as a CDE by the CDFI Fund.  To qualify as a CDE, an organization must:

  • be a domestic corporation or partnership at the time of the certification application;
  • demonstrate a primary mission of serving, or providing investment capital for, low-income communities or low-income persons; and
  • maintain accountability to residents of low-income communities through representation on a governing board of or advisory board to the entity.

Qualified Equity Investment (QEI)
A taxpayer wishing to receive a New Markets Tax Credit must make a QEI in a CDE which has been granted an allocation of NMTCs. A QEI must be:

  • a cash investment in the CDE, and
  • substantially all of the cash must be used by the CDE to make Qualified Low Income Community Investments, and
  • the CDE must designate the investment as a QEI.

Qualified Low Income Community Investment (QLICI)
A QLICI is any investment (such as a loan or equity investment) made by a CDE in a Qualified Active Low Income Community Business.

Qualified Active Low Income Community Business (QALICB)
A QALICB is any corporation (including a non-profit corporation) or partnership engaged in the active conduct of a qualified business in a low income community meeting standards pertaining to gross income, use of property, and services performed. In most cases, an entity formed to own real estate in a low income community will meet the standards for a QALICB.

Low Income Community (LIC)
A LIC includes any census tract which has a poverty rate of at least 20% or a median family income which is 80% or less of the metropolitan area median family income. A map showing eligible census tracts in downtown Oklahoma City and downtown Tulsa can be found by clicking here.

New Markets Redevelopment, LLC
5801 N. Broadway Extension, Suite 120
Oklahoma City, Oklahoma 73118
405.842.0100, Fax 405.848.8248