New Markets Tax Credits
Leading your project through the competitive New Markets Tax Credit financing process.
New Markets Tax Credits
Baker Tilly’s team of more than 60 tax credit and community impact specialists is among the nation’s leaders in New Markets Tax Credits (NMTC). Our team has structured and closed hundreds of federal and state NMTC transactions across the U.S. and territories supporting health care, education, community goods and services, manufacturing, healthy foods, Tribal projects and more.
NMTC consulting services
Maximize your project’s capital stack with Baker Tilly’s New Markets Tax Credit consulting team. Whether your project is a new construction, expansion, acquisition, rehabilitation or you’re adding new equipment – our team can develop a strategy to maximize NMTC allocation received, and work with you to efficiently structure and close the NMTC financing to maximize the net economic benefits for your high-impact project.
Our expertise and track record are widely recognized across the NMTC and tax credit industry for:
1. NMTC project consulting
Project sponsors and companies seeking NMTC benefits often select Baker Tilly as their advisor to structure their projects and lead all outreach and marketing efforts to Community Development Entity (CDEs) and NMTC investors to maximize NMTC allocation obtained.
Our engagements have secured billions of dollars of NMTC allocation for clients across the country over the last five years alone.
We are proud to have been retained to assist projects across multiple asset classes including health care, education, community goods and services, manufacturing, healthy foods and Tribal initiatives, as well as other high-impact projects.
Our team works with for-profit and not-for-profit project sponsors to structure the financing and maximize the capital stack while working where needed with alternative financing sources including Tax Increment Financing (TIF), grants, incentives, bonds, Historic Tax Credits and conventional bank debt.
2. CDE and NMTC loan servicing administration
Our Baker Tilly NMTC loan servicing team works with a diverse group of CDEs and banks across the country to manage CDE and NMTC administration and loan servicing. Loans under servicing management exceed $5 billion.
3. CDE advisory
Since the inception of the NMTC program, Baker Tilly has been an industry leader in CDE advisory services. Our CDE advisory team assists a diverse group of CDEs across the country with NMTC strategy, application support, deployment of NMTC allocation and closings.
Our CDE advisory team assists clients in identifying, underwriting, closing and administering transactions. We have assisted our CDE clients with deploying over $15 billion in NMTCs, and in doing so, closed transactions with over 100 CDEs.
In addition to our CDE advisory work, an affiliate of Baker Tilly created CDEs including the Community Business Investment Fund (CBIF) which have received NMTC allocation awards totaling over $500 million.
NMTCs at a glance
Managed through the U.S. Department of the Treasury, New Markets Tax Credits (NMTCs) are awarded to CDEs who, in return, deploy the credits to high-impact projects including those that create quality jobs for low-income individuals and provide goods and/or services to low-income communities. The NMTCs can finance up to 20% of a project’s total qualifying cost, helping fill a project’s capital stack.
The supply of NMTC allocation is limited, making securing NMTC financing highly competitive. Additionally, the complexities and technical aspects of the NMTC program add challenges to securing NMTC allocation.
NMTC expertise, experience and relationships with CDEs and investors matter, and Baker Tilly excels in all aspects. Involved in the NMTC industry since inception, our team has closed billions of dollars of NMTC transactions for hundreds of projects across various industries.
Interactive Map
New Markets Tax Credits (NMTC) mapping tool
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!
What sets us apart
Our NMTC track record and differentiators include:
- A team of over 60 professionals dedicated to NMTCs including project, CDE, loan servicing and financial modeling consulting
- Working with more than 100 CDEs to close over $15 billion of NMTC allocation nationwide
- Securing billions of dollars of NMTC allocation through our NMTC project consulting services
- Providing “in-house” NMTC financial modeling services – keeping all modeling and structuring under one roof from beginning to end
- Providing ongoing loan servicing, compliance and asset management for over $5 billion of outstanding NMTC lending
- Leveraging the resources of a leading top 10 advisory, tax and assurance firm in the U.S.
Video case study
NMTCs help fund the Boys & Girls Club's new Regional Workforce Center in Dane County
Watch how the Boys & Girls Club of Dane County used New Markets Tax Credit financing to create a Regional Workforce Center.
What we bring to the table
At Baker Tilly, we provide full-service assistance and work with your project every step of the way. Our services include:
Education, strategy and financial structuring
- Educate sponsor on NMTC timeline, success strategy, process and structure
- Create go-to-market investment summary to market the project to targeted CDEs and investors
- Identify CDEs and investors – based on geography, community impact and project type
- Prepare preliminary financial models
- Provide support in review of financing proposals to ensure they coincide with the NMTC program
- Review project diligence expectations to align with typical NMTC closing expectations (real estate, construction, etc. diligence)
- Identify experienced NMTC legal counsel
CDE and investor solicitation and due diligence
- Contact potential CDEs to solicit and procure NMTC allocations, demonstrating a clear path to closing with a well vetted project
- Contact potential NMTC investors to solicit interest in investing in the tax credits
- Complete CDE NMTC forms and diligence
- Coordinate CDE engagement with project including site visits
Structuring, negotiation and modeling
- Design transaction structure
- Secure and negotiate NMTC term sheets
- Develop NMTC financial model
Closing and compliance period
- Help lead the NMTC closing process
- Assist the project with NMTC due diligence and documentation as needed during the closing process
- Create a post-close compliance packet to ensure easy transition through the funding phase and ongoing seven-year NMTC compliance period
Featured case studies and insights
Additional services to meet your needs
Community Development Financial Institution Consulting
Baker Tilly’s experienced Community Development Financial Institution (CDFI) consulting team provides CDFI program application and business management and strategy services.
Construction Risk Management
Keep your capital projects on time and on budget.
Development Advisory
Guiding clients through development projects from conception to completion.
Government Funding & Compliance Advisory
Unlock and optimize your funding potential.
Historic Tax Credits
The trend to revitalize historic buildings nationwide is becoming more prevalent with the availability and value of Historic Tax Credits.
Incentives Advisory
Every year, federal, state and city governments across the United States invest over $170 billion of incentive funding into private businesses. Taking advantage of available incentives programs can fill financing gaps and turn planned projects into a reality.
Inflation Reduction Act Tax Credit Solutions
The Inflation Reduction Act (IRA) includes the largest clean energy incentive effort in U.S. history. Find out how your organization can leverage IRA energy tax credits to save as much as 50% or more on qualifying project costs.
Project Finance
We take a comprehensive view of available federal, state and local tax credit and incentive programs and loan programs when developing a project’s capital stack.
Real Estate Advisory Services
Baker Tilly’s real estate advisory services are designed to help leaders across various industries and communities with their ever-changing real estate and infrastructure needs.
Site Selection & Location Strategy
From inception to site selection, we assist companies through the process of determining the optimal location to operate their business.
Our professionals
No matter if all sources of capital are in place or your project’s capital planning is in its infancy stages, we can help. Our team is supported by a network of real estate advisory services and professionals that further enhance our abilities to lead a project through all phases of the development and/or financing process, as needed. Contact us today to discuss your project and how NMTCs can play a role in its funding.
