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January 24, 2025
The Targeting of Place-Based Policies: The New Markets Tax Credit Versus Opportunity Zones
Abstract For a place-based policy to succeed, it must target the right areas—typically those with lower economic development and resident well-being. The U.S. has two major place-based tax policies: the New Markets Tax Credit (NMTC), where government-approved entities select investments, and Opportunity Zones (OZs), where private investors choose projects. Despite underlying design differences, both target…