The Role of CDEs Awarded to New Markets Tax Credits
August 15, 2022
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For more than 20 years, the New Markets Tax Credits (“NMTC”) program has issued federal tax credits to community development entities (“CDEs”) and community development financial institutions (“CDFIs”). These organizations are empowered to use NMTC to support business development and investment in economically challenged communities around the country.
In the last year, less than one half of all CDEs applying for grants of credits received an award. Laurel Tinsley, Managing Director for the Firm’s New Markets Tax Credit Services, shares with Brooks and Sarah how she, and her team, work with CDEs to improve their applications and their chances of receiving credits for their communities. This discussion pairs nicely with our early podcast covering how businesses and developers can take advantage of NMTC. Understanding the mission and plans of a CDE lender can help business leaders, investors, and developers match their projects with the CDEs goals to benefit a community.
Chapter Markers
- 2:10 – Overview New Market Tax Credit Program
- 5:47 – Key Elements of an NMTC application
- 8:57 – What is an NMTC award?
- 12:40 – Why have CDE’s?
- 16:47 – Aligning purpose, pipeline, and outcomes
- 21:43 – Action steps to take now
- 25:30 – Room for success and collaboration