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NMTC Key Terms

Qualified Equity Investment (QEI): The cash investment made by an investor. The investment must be in a Qualified Community Development Entity (CDE). Substantially all the cash must used by the CDE to make Qualified Low-Income Community Investments, and the investment must designated by the CDE as a QEI.

Qualified Community Development Entity (CDE): An entity that receives a NMTC allocation and makes the investments. A CDE is any domestic corporation, partnership, or limited liability company whose primary mission is serving or providing investment capital for low-income communities or persons.

Qualified Low-Income Community Investment (QLICI): The investment that a CDE is required to make. A QLICI is any capital or equity investment in, or loan to, any Qualified Active Low-Income Community Businesses.

Qualified Active Low-Income Community Business (QALICB): A corporation or partnership that meets NMTC requirements primarily dealing with the location of or conducting of business within a Low-Income Community. Potential QALICBs include real estate investments, including retail shopping centers, office, supermarkets, industrial/manufacturing facilities and warehouses; and business investments, including Small Business Loans.

Qualified Low-Income Community (QLIC): A geographic census tract area in which NMTC investments may be made. In a QLIC the poverty rate is at least 20% OR the median family income does not exceed 80% of the area or statewide median family income.