iStock_000004229538Large _Snapseed

Congress created the New Markets Tax Credits program in the early 2000s to incentivize private investment in “low income communities.” Low income communities are those experiencing high unemployment, high rates of poverty or low median household incomes. The NMTC program provides a 39% Federal income tax credit on the amount of investment, paid over seven years.

NMTC financings are complex, challenging and expensive to transact. Columbia Capital's 20 years of deal execution experience, coupled with the expertise of its staff team in finance, law and economics, provides a valuable resource to sponsors/borrowers under the NMTC program.With advice provided on approximately $75 million of qualified equity investment, our team is ready to help your organization explore the world of NMTC.

Columbia works with governments, non-profits and private companies to develop preliminary plans of finance, to evaluate the potential benefit of an NMTC financing, to develop credit packages to attract NMTC allocation and investment, to negotiate the terms and conditions of an NMTC allocation, to select attorneys and other team members, to secure sources of leverage, and to manage the execution process. We work to ensure the interests of our client are properly represented in the transaction and reflected in the financing documents.

After the transaction closes, Columbia Capital remains in touch with its NMTC clients to assure on-going compliance and to resolve issues that might arise over the seven-year compliance period. Once that compliance period ends, Columbia works closely with the community development entity and investor to ensure a smooth and low-cost exit to the transaction.


new markets tax credits