Texas Mezzanine Fund Awarded $75 Million in New Markets Tax Credits
On December 23, 2025, the U.S. Department of the Treasury announced a combined 2024 and 2025 “double round” of New Markets Tax Credit Program awards, alongside reforms designed to sharpen community revitalization outcomes and strengthen compliance oversight.
In this funding round, Texas Mezzanine Fund, Inc. was awarded $75,000,000 in NMTC allocation authority (2024 Calendar Year). This allocation expands TMF’s capacity to deliver flexible, credit enhanced financing for qualified projects in eligible low income communities across Texas.
What Treasury Signaled in this Round
Treasury framed this cycle as a shift toward predictability and measurable impact, with the NMTC now permanent under the One Big Beautiful Bill, and with a stated emphasis on lasting job creation. Treasury also reported a 20 percent increase in investments directed to rural and non metro communities, tied to priorities such as rural hospitals, small business expansion, domestic manufacturing capacity, and job creation.
What is Changing on Compliance and Monitoring
Treasury stated that the Community Development Financial Institutions Fund will modify allocation agreements and enhance monitoring of awardee use of credits to ensure compliance with applicable law and executive orders. Treasury also noted potential remedies for noncompliance, including possible decertification of the community development entity, termination of unused credits, and recapture of past awards, to the extent permitted by law.
What the $75 Million Enables for Texas
TMF’s allocation is designed to finance projects that close real capital gaps and produce auditable community outcomes. In practical terms, this award positions TMF to support:
Operating businesses that are expanding capacity, adding jobs, or stabilizing critical supply chains
Manufacturing and industrial projects with durable employment and local multiplier effects
Community facilities, including healthcare related infrastructure that improves access and resiliency
Transactions where conventional debt and equity alone do not pencil, but impact economics justify the build
This is especially relevant for rural and non metro deals, where the federal priority signal is now explicit and where capital stacks often require multiple layers of subsidy and credit enhancement.
How to Engage TMF
If you are advancing a project that may qualify for NMTC financing, TMF prefers early engagement so the team can validate eligibility, structure, timeline, and compliance readiness before major design and contracting decisions lock in.
A strong initial conversation typically includes:
Project location and census tract information
Total project cost and identified financing gap
Uses of funds, jobs, and community outcomes
Sponsor capacity, operating history, and construction timeline