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New Markets Tax Credit

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At Nolan Sheehan Patten, we have represented clients on a full range of New Markets Tax Credit (“NMTC”) matters since the inception of the federal program in 2000.

From representing numerous allocatees in completing NMTC applications, to closing NMTC transactions on behalf of Community Development Entities (“CDEs”) and Qualified Active Low Income Community Businesses (“QALICBs”) for projects such as healthcare facilities, youth centers, performing arts venues, charter schools, assisted-living facilities, manufacturing plants, office buildings and mixed-use projects, we have the full breadth of experience in the NMTC field.

 

Many of our NMTC transactions utilize layers of tax credit programs, including the federal Historic Rehabilitation Tax Credit and state tax credits, and we have identified structures that allow for housing components (both affordable and market rate) alongside traditional NMTC uses. These transactions involve a wide range of deal structures, often times more challenging than a typical NMTC transaction because the projects have greater financial need and need to utilize non-traditional financing sources.

In particular, Nolan Sheehan Patten helps clients with:

  • Forming and qualifying CDEs and subsidiary CDEs.

  • Assisting with preparation of NMTC applications.

  • Reviewing and amending allocation agreements and related opinions and documents.

  • Creating financing structures and implementing NMTC transactions through to closing.

  • Drafting and negotiating NMTC documents such as leverage loan documents, forbearance agreements, CDE operating agreements and Qualified Low-Income Community Investment loan and equity documents.

  • Preparing tax opinions.

  • Creation of blind investment pools and loan funds.

  • Preparing offering and investment instruments.

  • Structuring and effectuating workouts and unwinds.

  • Keeping abreast of legislative and regulatory changes and court decisions affecting our clients’ work.

Click here to view representative projects

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