New Markets Tax Credits
Funding through the New Markets Tax Credits (NMTC) program can be the difference between ‘what could be’ and ‘what is.’ Low-income communities across the country are benefitting from the program, which grants federal tax credits to those who invest in disinvested communities. Though the NMTC program is an incredible funding source, the process between award and receiving the funds is complex and can put strain on even the most robust organizations. 33S understands the terrain and will serve as your organization’s representative, working closely with the investment advisory team to ensure a timely and efficient transaction.
How Does the Program Work?
The New Markets Tax Credits (NMTC) program is a federal program enacted in 2000 designed to incentivize investments in low-income communities in exchange for federal tax credits. Approved projects in low-income communities such as commercial real estate, small businesses, and other community facilities show that their work leads to positive outcomes that benefit the community. Community Development Entities (CDEs) are selected by the Community Development Financial Institutions (CDFI) Fund to sell the credits. The CDE’s, then, are obligated to use the proceeds to invest in a low-income community project.
Is Your Project Qualified For NMTC Funding?
- 70-80% of the capital needed to complete the project has already been identified
- Project is in a low-income community, defined as one with a poverty rate greater than 20% or a Median Family Income that is less than 80% of the area or statewide Median Family Income
- Project can show it will create positive outcomes in the community in which it serves
Continue to focus on your organization’s mission while the 33S team secures the gap funding for your project!