The NMTC is a federal program created under the Community Renewal Tax Act of 2000 to stimulate economic and community development in America's low-income communities. The program provides investors with federal tax credits for making investments in a wide range of businesses located in low-income communities. The credit provided to the investor totals 39% of the investment cost and is claimed over a 7-year period. The sale of the credit to the investor provides equity, which can be permanently placed in the project.
At tag, NMTC services are our specialty. In addition to securing NMTC Allocations for a variety of projects nationally, tag assists organizations that wish to become CDE lenders by providing turn-key services to get them started, including training, building the NMTC team, and drafting the NMTC Allocation Application. To date, tag has authored applications resulting in $314 million of NMTC Allocation:
- Largest Round 4 GO Zone Allocatee - $100 million
- Largest Round 5 GO Zone Allocatee - $50 million
- Economic Development Organization - $89 million
- Economic Development Organization - $60 million
- Economic Development Organization - $15 million
We offer a full range of services for our CDE clients in connection with NMTC-assisted financing, including:
- NMTC Mapping
- NMTC Training
- Forming Community Development Entities (CDEs)
- NMTC Allocation Applications
- NMTC Equity Placement
- Negotiating and documenting loans/investments made by our CDE clients and QALICB clients
- NMTC Reporting and Compliance Advisory Services