New Markets Tax Credits
J.D., CPA
Principal
J.D.
Principal
Managing Director
Managing Director
Principal
The New Markets Tax Credit (NMTC) program was established to stimulate investment opportunities for not-for-profits, operating businesses and real estate projects located in low-income communities. Community Development Entities (CDEs) apply annually to the U.S. Treasury Department for delegated authority to sell these federal tax credits. The proceeds from that sale are then used to fund investments, typically structured as low interest rate loans, in qualifying businesses or commercial real estate developments.
NMTCs were not designed to be a primary source of funding, but they can be an excellent option to fill a gap in funding for projects that make economic sense. NMTC net proceeds can fund up to 20-25% of a project and are paired with capital campaign proceeds, owner equity, borrowed funds or other available tax credits and incentives.
Our NMTC professionals work closely with owners, developers, community leaders, lenders, investors, and CDEs to optimize a project’s approach to capital while ensuring compliance, mitigating risk and maintaining transparency for key stakeholders.
Baker Tilly's interactive mapping tool can help you determine if a project is located in a census track that may qualify for NMTCs. 2016-2020 data now available!
The Baker Tilly Capital team helped mHUB secure $36.6 million of New Markets Tax Credit (NMTC) financing to acquire and rehabilitate the historic 240 N Ashland Blvd clock-tower building in Chicago.