In the fourth quarter of 2016, the New Markets Tax Credit (NMTC) program will have a record allocation of $7 billion. Now is the time to understand how the program works and how that allocation may benefit the capital structure of your project.
The NMTC program was established to spur investment into operating businesses and real estate projects located in low-income communities. Community Development Entities (CDEs) apply annually to the United States 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 twenty to twenty-five percent of a project and are paired with owner equity, borrowed funds, or other available tax credits and incentives.
Key learning objectives
Upon conclusion of the webinar, presentation attendees will understand:
- The basics of how the NMTC program works
- How NMTC fits into the overall capital structure of a project
- An understanding of what projects qualify and which do not
- The steps to take to position a project for consideration
- The responsibility of the project once awarded NMTC
- How to take advantage of record allocation
Who should attend
- Organizations looking to expand their facilities
- Business owners with expansion plans
- Organizations adding jobs in low-income communities
- Economic development professionals
- Nate Voss, Principal, Baker Tilly
- Tyler Inda, Senior Manager, Baker Tilly
Information about CPE eligibility
There are no prerequisites for this webinar, and advance preparation is not required. There is no cost to attend this webinar.
Field of study: Specialized Knowledge Applications
Program Level: Overview
Type of delivery method: Group-internet-based
Advance preparation: None required
CPE credit: One (1) hour total credit
CPE host: Anna Nelson
A certificate of completion will be e-mailed to you four to six weeks after the event.
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Baker Tilly Virchow Krause, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.