The New Markets Tax Credit (NMTC) program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years.

Grow assists project sponsors in securing NMTC allocation from Community Development Entities (CDEs). This includes structuring, creating marketing materials, contacting CDEs and completing intake forms on the project, negotiating terms throughout the closing such as investor pricing and CDE fees, and guiding the overall closing process to ensure efficiency. We have been involved in numerous NMTC projects across the country, with clients ranging from small nonprofits to companies with an international presence.

A 20% income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.”

Grow works with project sponsors to ensure that their capital stack is making the best possible use of these incentives, including both historic tax credits and preservation easements. Grow has worked with developers across a variety of project types and assists a regional bank in building their historic tax credit practice.

In addition to the foregoing, the Grow Team has extensive experience consulting on all facets of development financing, including construction lending, PACE financing, tax increment financing, and opportunity zone investment.