NMTC for Economic Developers to Attract Business | Five Points Strategic Advisors

For local economic developers, securing investment and fostering economic growth is a constant challenge. Communities must leverage every available tool to attract businesses, create jobs, and enhance local prosperity. One powerful yet often underutilized tool is the New Markets Tax Credit (NMTC) program. This federal incentive can serve as a game-changer, offering a financial edge that competing communities may not have.

Understanding the New Markets Tax Credit Program

The NMTC program was established to stimulate investment in economically distressed areas by providing tax credits to investors who finance businesses and projects in qualifying census tracts. Essentially, it offers investors a 39% tax credit over seven years on investments in businesses or economic development projects located in eligible communities.

For local economic developers, this means that businesses looking to expand or relocate can benefit from significant financial incentives, making investment in their community more attractive. However, the NMTC program can be complex, requiring expertise to navigate the process efficiently.

A Competitive Advantage for Your Community

Not all communities are eligible for NMTC funding. The program is restricted to designated low-income census tracts, meaning that local economic developers who work within these areas have a unique advantage. By integrating NMTCs into their economic development strategy, they can offer businesses an additional incentive that many other communities cannot.

Companies seeking expansion are drawn to areas that offer the best mix of location, workforce, and financial incentives. The NMTC program can serve as a tipping point for decision-makers evaluating multiple site options. With the ability to lower capital costs and enhance project feasibility, NMTCs provide a compelling reason for businesses to invest in qualifying communities.

Overcoming New Markets Tax Credit Complexity with Five Points Strategic Advisors

While the benefits of the NMTC program are clear, many economic developers and businesses hesitate to pursue it due to the program’s perceived complexity. This is where Five Points Strategic Advisors comes in. Our team specializes in guiding clients through the intricate process of securing NMTC financing, ensuring that projects maximize their benefits while minimizing administrative burden.

Our experts assist economic developers by:

Identifying Eligibility: We help determine whether a project is located within a qualifying census tract and assess its potential for NMTC funding.
Structuring the Investment: We work with developers, investors, and community organizations to structure transactions that maximize financial benefits.
Navigating the Application Process: The NMTC application and allocation process can be daunting. We provide step-by-step guidance to streamline approvals and compliance.
Connecting with Key Stakeholders: Our extensive network of investors, Community Development Entities (CDEs), and lenders ensures that projects gain access to critical financing sources.

By partnering with Five Points Strategic Advisors, local economic developers can confidently offer NMTCs as an incentive without the burden of navigating the program alone.

Take Action: Harness NMTCs for Your Community

Local economic developers should view NMTCs not as a challenge, but as an opportunity to set their community apart. By integrating NMTCs into their business attraction strategies, they can unlock new sources of capital, drive investment, and create lasting economic impact.

If you’re looking to explore how NMTCs can work for your community, Five Points Strategic Advisors is here to help. Our team of experts simplifies the process, allowing economic developers to leverage this powerful tool with confidence. Let’s work together to turn opportunity into growth.

Contact Five Points Strategic Advisors today to learn how we can help you navigate the NMTC program and attract the investment your community deserves.