Will Form 1120 C Facilities 2023-2024

Let's discuss the new Markets Tax Credit program, or NMTC, and how it attracts and is meant for real estate projects, community facilities, and operating businesses. New Markets Tax Credits are federal income tax credits used to encourage private investment in low-income communities around the United States. The credits are designed to create measurable community impacts such as job creation, goods and services, and eradicating food deserts. The Community Development Financial Institutions Fund, or CDFI, a division of the US Department of the Treasury, administers the program and provides authority for Community Development Entities, or CDEs, to sell the tax credits. CDEs have a mission to provide investment capital to low-income communities, are certified by the CDFI Fund, and are typically sponsored by banks, state or local governments, and other nonprofit or for-profit organizations. Through a competitive application process, CDEs are awarded an allocation of federal new Markets Tax Credits. Once awarded, CDEs identify equity investors that provide capital to the CDEs in exchange for tax credits. Investors are provided federal tax credits taken over a seven-year compliance period, equal to thirty-nine percent of the amount of the investment made in the CDE. The capital raised through the sale of the credits allows the CDEs to make investments in qualified businesses, nonprofits, and commercial real estate developments. These investments are typically structured as low-interest, interest-only loans with a seven-year term. As a rule of thumb, if you are building a new facility or expanding your operating business, new Markets Tax Credits can fund up to twenty to twenty-five percent of your project and must be paired with other funding sources including owner equity, borrowed funds, and other credits or incentives. Using the NMTC mapping tool on Baker Telecom, you can easily locate qualifying areas to determine if your project is eligible. These areas...