International firm creates jobs in Texas with the help of New Markets Tax Credits
Client need
An international manufacturer of lifting and rigging products in Texas was looking to construct a new facility to improve worker safety conditions, increase efficiency, productivity, reliability and quality of product flow within the forging process.
The $54 million facility is anticipated to consolidate operations from a 21-building campus into a single facility. The new site for the facility was a candidate for New Markets Tax Credits (NMTC) given its location in a non-metropolitan area. Upon relation to this new facility, operations would retain 362 jobs and create 50 additional jobs over the next two to three years.
Our client was seeking a total allocation of $36 million in NMTC that would provide the necessary subsidy for this project to move forward.
Baker Tilly Capital solution
The Baker Tilly Capital team worked with multiple community development entities to secure New Markets Tax Credit allocations for the new facility, specifically working to highlight the significant job creation of 50 additional jobs and an estimated $39 million in local economic impact the project would generate.
Result
With our team’s assistance, the new facility project successfully secured more than $36 million in New Markets Tax Credit allocations to fill the project’s financing gap. This would provide a net benefit of over $10.7 million towards the cost of building the new facility.
For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.