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The U.S. Treasury’s CDFI Fund completed its sixth competitive allocation round of New Markets Tax Credits (NMTC) in October of 2008 and granted Montana Community Development Corporation an allocation of $40 million in investment capacity to be used in eligible areas and projects. While MCDC is certified to sponsor NMTC transactions anywhere in Montana, it has committed to using more than half of its allocation in rural Montana (areas outside of the counties of Missoula, Cascade and Yellowstone). The NMTC program can help underserved communities attract capital to good projects on favorable terms. The program provides an incentive to debt and equity investors in the form of a 39% federal income tax credit for investing capital into qualified projects in eligible low-income areas. Basics of Eligibility for For-Profit and Nonprofit Entities Total project size of at least $3 million. Project in a designated low-income census tract with either a poverty rate of 20% of greater or Gross Median Income of 80% of less of the state average. (see maps here for an initial view of qualifying areas) Eligible investment type including most real estate projects and operating businesses with the exception of gambling, golf courses, liquor stores, financial institutions, businesses dealing primarily with intangible assets, and others. Strong economic development and/or community impact, such as helping to create or retain jobs; acting as the catalyst for larger development, infusing sources of new investment capital into an under-served, low-income area; and creating new access to community services such as education, healthcare, child & elder care, and retail services. Environmental sustainability and beneficial impacts, such as supporting land conservation efforts, sustainable forestry practices, use of recycled materials, an increase in energy efficiency, the reuse of existing or historic structures, and the implementation of “green” building materials and concepts. NMTC Program Overview (PDF) To determine if your project might be eligible for NMTC financing please fill out our intake form (word document) and send it to Heidi DeArment, VP, Financial Services at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call our office to learn more. Additional NMTC information and resources can be found at the CDFI Fund’s Website: www.cdfifund.gov then click on “Programs,” and select the NMTC program |
