Taking Advantage of New Markets Tax Credits
1 hour 30 minutes
Learn about the types of projects that may qualify for New Markets Tax Credit financing and why it is preferable to conventional options.
In low-income communities across the United States, the COVID-19 pandemic has wreaked havoc in areas already suffering from long-term unemployment and lack of economic growth. The New Markets Tax Credit, codified in Section 45D of the Internal Revenue Code, was enacted with bipartisan support in 2001 and recently extended for an additional five years under the Consolidated Appropriations Act as a way to combat job loss and encourage investment in low-income communities. This material will show how the use of the New Markets Tax Credit is especially appropriate in the current economic climate and will discuss how projects utilizing New Markets Tax Credits result in a subsidy to the borrower of approximately 20% or more.
• You will be able to describe a typical NMTC financing.
• You will be able to identify the types of projects that may qualify for New Markets Tax Credit financing.
• You will be able to discuss the NMTC and its benefits to low-income communities.
• You will be able to explain why NMTC financings are preferable to conventional financings.