Intended to stimulate investment and economic growth in low-income urban neighborhoods and rural communities, New Markets Tax Credits (NMTC) financing is a critical source of low-cost capital and equity for health center facility projects—often securing approximately 20-22% of total project costs. 

Capital Link assists health centers in completing the complex NMTC process, including drafting a proposed NMTC-leveraged model based on capital project needs, identifying one or more Community Development Entity(ies) (CDE) with tax credit allocation, identifying a potential investor to buy the tax credits, providing references to experienced legal firms, and advising the health center through to the closing of the transaction. To date, we have assisted health centers with structuring and closing NMTC transactions in excess of $614 million—more than half of all NMTC financing raised to support FQHC projects. 

We have developed several resources explaining what the NMTC Program is, how this type of financing works, qualification criteria, and a detailed example of the transaction structure. Access our NMTC resources here.

 

 New Markets Tax Credit

 

 

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