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Brian Wishneff
& Associates
Headquarters
Professional Arts Building
30 West Franklin Road
Suite 503
Roanoke, VA 24011
P: (540) 982-1317
F: (540) 982-1568
Washington, D.C. Office
1150 18th St. NW,
Suite 375
Washington, DC 20036
P: (540) 312-5923
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New Market Tax Credits
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Last Updated: Apr 1st, 2008 - 12:33:32 |
Summary
The New Market Tax Credit (“NMTC”) program was created by Congress to encourage financial investment and economic development in lower-income communities throughout the United States. If you are developing real estate in an area that was either historically or is currently distressed, your project may be eligible for a NMTC investment.
- The CDFI Fund, a branch of the U.S. Department of the Treasury, administers the NMTC program. Certified Development Entities (“CDE”) will submit applications on an annual basis to the CDFI Fund for NMTC allocations. This application process is extremely competitive. Generally, in their applications, these CDEs will target certain geographic and types of investments for their allocations.
- CDEs that receive an allocation from the CDFI Fund will in turn agree to dedicate these tax credits to projects located in qualified census tracts that meet the investment criteria established in their applications.
- CDEs generally will contribute a NMTC allocation into a project in one of two ways:
- Provide a low interest loan, typically 200-400 basis points below market rates to the project sponsor, or
- Provide a forgivable loan to the project sponsor. For this type of investment, the funds essentially become an equity investment in the project by the CDE or its designated investor in exchange for the tax credits.
- As a result, these credits can provide a significant financial boost to many types of projects including community facilities and commercial ventures.
- The program has become extremely competitive and therefore, many projects are competing for each CDEs allocation. Brian Wishneff & Associates has established great working relationships with many of the CDEs that have received NMTC allocations and as a result feel that if anyone can bring a NMTC allocation to your project, we can do it.
If you would like to investigate the potential use of NMTCs for your project, please contact us and we can help determine your projects eligibility. If your project is located in an eligible census tract, we can help to secure a CDE and if successful structure the NMTC portion of your project. For more information on the services BW&A provides with regard to the securing, structuring, underwriting and syndication of new market tax credit transactions, please see the Consulting Services page above. Examples of projects where we have helped sponsors take advantage of New Market Tax Credits include:
Feb 6, 2008, 13:07
The Prizery Historic Tax Credit Project
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| The Prizery Project |
The Prizery, formerly the R.J. Reynolds Tobacco Company, served as a tobacco warehouse where tobacco was "prized," or pressed layer by layer into barrels and then shipped all over the US. Alas, the tobacco industry slowed in the early 1960’s and this once vibrant building sat empty from that point until the start of its renovation in 2001. Unique from our other projects, this job involves a phased development, in which two distinct portions of the building were segmented off from each other for Phase I and Phase II rehabilitations. The rehabilitation for these two phases is being performed, completed, and opened for use in different years, but all within a 5-year period. This phasing approach allowed the Community Arts Center Foundation to use VDOT money to rehab the Phase I segment and use the tax credit equity resulting from this first phase as part of the funding sources for the second, larger phase. We have successfully completed Phase I and have started on the Phase II construction, which will be complete by the end of 2005. [ Visit Website ]
Oct 6, 2007, 20:48
Attucks Theatre New Markets Tax Credits & Historic Tax Credit Project
The Attucks Theatre was one of the first theatres of its kind to be completely designed, built, and financed by the black community for the black community. Opening in the 1919, the theatre served the black community in various ways: performing arts, concert hall, movies, vaudeville, local talent, original plays, and school graduations. [ Visit Website ]
Oct 5, 2007, 20:57
The Imperial Centre
“The Imperial Centre, formerly the Imperial Tobacco Plant, located in the heart of Rocky Mount’s downtown was renovated with the use of historic and new market tax credits to create a new Arts Center and Children’s Museum for the surrounding community.” [ Download/View File ]
Oct 5, 2007, 11:10
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