The NMTC program is flexible in terms of the type and purpose of the project. QALICBs can be used to finance equipment, operations or real estate. Real estate financings can acquire or rehabilitate retail, manufacturing, agriculture and community services (for example, health services). B, museums or charter schools), renting or selling housing or combinations. NMTC investors provide capital to municipal development agencies (CSDs) and receive credits against their federal tax obligations in return. Investors can use their tax credits in just seven years – 5 percent of the investment for each of the first three years and 6 percent of the project for the remaining four years – for a total of 39 percent of the NMTC project. A CRC may be its own investor or find an external investor. Investors are primarily companies – often large international banks or other regulated financial institutions – but any entity or person has the right to use NMTCs. Qualified Active Low-Income Community Businesses (QALICBs) receive NMTC investments. Qalicbs are referred to as “businesses” but can be for-profit or not-for-profit businesses. Urban Institute calculations based on CDFI data showed that NMTC projects, which recorded a corporate structure between 2003 and 2016, received 69 percent of for-profit QALICB, 30% for non-profit organizations and 0.4 percent of tribal unit investments. Since much of the success of the NMTC closure depends on the sponsor of the project, we play an active leadership role in the closing process.
It starts early on with identifying the specific challenges of the deals – whether they get location control, navigate the authorization process or provide other financing – and work closely with clients to overcome these “gating” elements. With many parties, legal documents and due diligence involved in the conclusion, we work closely with our clients to ensure that the closing process proceeds smoothly and reliably for all. By focusing on end-of-end support, we are able to maximize the benefits of NMTC. We help our clients perform assessment, documentation, analysis and community impact information tasks in NMTC transactions.