Who can benefit
The NMTC is ideal for developments of $5 million or more. Typical projects involve the acquisition, rehabilitation, or construction of real estate in low income communities. These can include:
- Manufacturing and industrial facilities
- Community centers
- Commercial offices and retail
- Mixed use (commercial/residential) properties
- Schools, universities, vocational training facilities, other educational uses
- Theaters, museums, restaurants, and entertainment venues
- Assisted living facilities
- Medical clinics
- Hotels and hospitality properties
- Machinery and equipment purchases
A developer wants to build a $10 million dollar manufacturing facility in a New Markets designated area and receives $10 million dollars in New Markets financing. The generated tax credit would equal 39 percent (or $3.9 million) over a seven year compliance period. The developer can then negotiate the sale of these credits and receive approximately $3 million from the New Markets Tax Credit investor to help finance the facility. At the end of the seven year compliance period, the $3 million in investor equity typically reverts to the developer.
New markets tax credit services
Our tax professionals have a deep understanding of federal and state tax laws. We can help you determine if your business or potential project is in a qualified census tract, navigate the complex filing requirements, and stay compliant with the program. Our industry experience allows us to evaluate your options. Our modeling tools can offer you insights into transaction structuring. The combination can help you make informed decisions.
InsightsSee All Insights
Article 11/30/2022New BOI Requirements Will Affect Most U.S. Businesses. Are You Ready?
Article 11/30/2022South Carolina’s New Job Tax Credit Is Worth a Closer Look
Article 11/29/2022Employee Retention Credit: Warnings and Wisdom
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EventsSee All Events
Webinar 12/14/2022Improving Dealership Value and Transaction Tax Considerations
Event 12/8/2022 – 12/9/2022AICPA & CIMA Construction & Real Estate Conference
Webinar 12/7/20222023 Economic, Industry, and Investment Outlook
Event 12/4/2022 – 12/6/2022Consultants Forum 32: Best Practices for Economic Developers
Webinar 8/24/2022 – 1/11/2023Dealer Tax Strategies Webinar Series
Event 3/2/2022 – 12/7/2022Quarterly Economic and Industry Market Outlook