New Market Tax Credits Program

MAST Center MapSouthside Development Enterprises, under the sponsorship of the Portsmouth Redevelopment and Housing Authority, was awarded a $21 million allocation of New Markets Tax Credits (NMTC) in 2003 and a $10 million allocation in 2008. NMTC is a program under the auspices of the Community Development Financial Institutions (CDFI) Fund of the U.S. Treasury. This program is intended to spur approximately $15 billion in investments into businesses in underserved areas. The federal government certifies Community Development Entities (CDE) and grants them allocations of NMTC. The CDE is a locally managed company with accountability to the communities it serves. An entity set up this way has a greater understanding of what will most help a community and be able to put the investments to the best use.

The NMTC Program works with investors and businesses. Investors will invest money into the CDE, Southside Development Enterprises, and in turn receive a tax credit worth 39% of their investment over the course of seven years. Southside Development Enterprises in turn uses that investment to make loans for businesses to carry out construction, renovation and/or expansion in Portsmouth's underserved communities. These loans are on more favorable terms than a business could expect to receive commercially due to the subsidy of the NMTC.

To date, Southside Development Enterprises has used $17,525,000 of its NMTC allocation in support of the development of Phase One of the MAST Center at Hampton Roads Crossing. The investment made in this project ensured that Old Dominion University located its new Tri-Cities Center in Portsmouth, bringing important educational opportunities in an emerging technology field to our community. Our investment also supported the construction of a new office building adjacent to the Tri-Cities Center. The map below shows where the site is located, straddling the Portsmouth/Suffolk line. Phase One of the MAST Center brings a $36 million investment and 170,000 square feet of office and educational space to Portsmouth and the surrounding area. These two investments are expected to create 405+ permanent new jobs and 150+ new temporary construction jobs. Employment in the MAST Center has the potential to create up to 1,500 jobs upon full build-out. The permanent jobs will be in the modeling, analysis and simulation field and related and supportive areas. The MAST Center brings Portsmouth training in a cutting edge field. It also brings the high-tech businesses that will ensure future jobs as this industry develops. It is estimated that the modeling and simulation industry has created 4,000 new jobs in the region with salaries twice the local average.

To see where in Portsmouth these credits can be used, please view our Incentives Zone Map. For more information regarding this program and to find out if your business project may be eligible, please contact the Director of Development at (757) 391-2910 or at This email address is being protected from spambots. You need JavaScript enabled to view it..