New Markets Tax Credits
Optimize your project’s approach to capital with the New Markets Tax Credit program.
New Markets Tax Credits
At a glance
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.
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!
By the numbers
300
Identified opportunities for more than 300 clients
45
Over 45 professionals dedicated to NMTCs
100
Worked with 100+ CDEs on successful structuring and closing of transactions in excess of $12 billion of allocation nationwide
$30M
$10 million to $30 million typically awarded per project
Case study
NMTC financing helps Dr. Howard Fuller Collegiate Academy construct college prep high school campus
Dr. Howard Fuller Collegiate Academy received $31 million of New Markets Tax Credit financing to support the construction of a new 71,600-square-foot college prep high school campus.
Featured case studies
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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.
