Preservation-Based Community Development with New Markets Tax Credits

WE SPECIALIZE IN NEW MARKETS TAX CREDIT INVESTING
With this year’s award, we will prioritize deploying our NMTC allocation to real estate projects that:
  • Rehabilitate historic buildings in “severely distressed” LICs
  • Are at least $5 million in total development costs
  • Support small business growth, incubation, and revitalization
  • Include mixed-income and affordable housing opportunities
  • Support community facilities that provide healthcare, education/workforce training, or services for children
Impact Goals Of Our New Markets Tax Credit Investments
  • Create quality and accessible jobs in low-income communities
  • Offer flexible lease rates to businesses within low-income communities - particularly small businesses affected by the global pandemicSupport investments that engage, support, and uplift local BIPOC communities, businesses, and issues.
  • Improve access to healthy and affordable food options within low-income communities
  • Catalyze additional private investments in the low-income communities we invest in by achieving success within them
What Locations are Eligible for NMTCs? +

A project must be located in a qualified census tract that meets the determination of a Low-Income Community (LIC). The NMTC program defines Low-Income Communities as census tracts:

  • Where the poverty rate is at least 20%; or
  • Where the median family income does not exceed 80% of the area median family, or
  • Where the median family income does not exceed 85% of the area median family income provided the census tract is located in a high migration rural county; or
  • Where the census tract has a population of less than 2,000 and is contained within a Federally designated Empowerment Zone and is contiguous to at least one other LIC.
How does NTCIC determine a project’s need for NMTCs? +

The NMTC is meant to provide flexible and accessible capital to projects and businesses that are ineligible or unable to secure traditional financing to complete the project. As such, CDEs will review a project’s current financials to determine that “but for” (without) New Markets Tax Credit financing, the project/investment would not be feasible. Ways projects can show their need for NMTCs include:

  • Attempts to secure traditional investments
  • Existing financing gaps
  • Ongoing and extended fundraising needs
  • Limited debt service capabilities
What Project Uses are Eligible/Ineligible for NMTCs? +

The NMTC program is flexible regarding the types and purpose of projects. QLICIs can be used to finance:

  • A real estate investment that develops or rehabilitates a building to bring new commercial, industrial, retail, and/or housing opportunities to an LIC.
  • Commercial/manufacturing equipment purchases to enhance operations and create new job opportunities.
  • Supporting entrepreneurs and new/existing operating businesses  by providing flexible and patient loans.
  • However, many CDEs seek investments in projects that also support their individual missions, such as those that provide vital goods and services, create jobs, or spur further investment in LICs.

Ineligible activities for NMTC investment include:

  • Residential rental properties
    • The income produced by the residential portion of an NMTC-eligible project can be no more than 80% of the total income generated.
  • Certain businesses such as:
    • Golf courses, race tracks, massage parlors, hot tub facilities, gambling facilities, country clubs, tanning salons, and stores where the principal business is the sale of alcohol for off-site consumption
What types of projects does NTCIC finance with its NMTC allocation? +

NTCIC will use its NMTC allocation to offer equity and debt products to real estate projects that rehabilitate strategic historic properties located in Severely Distressed communities whose primary use provides direct benefits to low-income persons and locally-owned small businesses. For more information on our NMTC portfolio, contact info@ntcic.com


The Impact of the New Markets Tax Credit Program

$8 for $1

Generated $8 of private investment for every $1 of federal funding

281 MIL

Created 218 million sq. ft. of manufacturing, office and retail space

Irvin Henderson Main Street Revitalization Fund

Main Street Small Deal Fund

Recognizing a financing need for historic rehabilitation projects located within low-income Main Street communities, we developed the Irvin Henderson Main Street Revitalization Fund. This financing opportunity provides $2 – 4 million in New Markets Tax Credits to smaller, Main Street-oriented projects by leveraging the federal Historic Tax Credit.  NTCIC targets projects that provide goods, services, and business opportunities that are most needed in these communities.

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