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Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer
Providing You Guidance to Innovate and Grow Your Business
Achieving Success When Selling to the World’s Largest Buyer

COVID-19 Guidance Center

Tax Implications and Financial Business Guidance Regarding the Coronavirus

Transaction Advisory Services

Helping businesses navigate financial due diligence engagements and domestic and cross-border transactions.

Employee Retention Credit Tax Services

Expanded Employee Retention Credit (ERC) & how our professionals can assist you.

Services

New Markets Tax Credit Finance

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What is the New Markets Tax Credit Program?

The New Markets Tax Credit Program (“NMTC”) is a federal program intended to encourage private capital investment in eligible, impoverished, low-income communities. Created under the Community Renewal Tax Act of 2000, NMTCs are allocated by the Community Development Financial Institutions Fund (“CDFI”), a bureau within the United States Department of Treasury, under a competitive application process.

How Does New Market Tax Credit Financing Work?

The NMTC Program provides investors with a 39 percent federal tax credit claimed over a seven-year period. The tax credit proceeds create equity, which can be permanently placed in eligible low-income community projects.

Through the Tax Advantage Group by Cherry Bekaert, we help our clients successfully finance NMTC projects, and have participated in $1.9 billion in NMTC funding.

We work in all areas of the NMTC Program, including:

  • Community Development Entity (“CDE”) Certification
  • NMTC Allocation Applications
  • NMTC Management Services
  • NMTC Placement

Community Development Entity (“CDE”) Certification

We specialize in securing low-cost, flexible financing for community and economic development projects throughout the United States. NMTC funding is available to certified CDEs. We can assist with the preparation and filing of the CDE Certification application to the CDFI Fund. We also provide strategic planning related to the CDEs Controlling Entity and Governing and Advisory Boards.

 

New Markets Tax Credits Allocation Applications

We help organizations prepare NMTC applications, through a limited review or a full turn-key application. To date, TAG has authored applications resulting in over $1 billion of NMTC allocation. Our aim is to position our clients strategically to secure and manage their NMTC allocations.

During the limited review, we examine any prior NMTC application filings, provide best-practice recommendations to incorporate into a current filing, and provide in-depth training on the current year NMTC application. For a full turn-key application, we draft for approval, and file, all sections of the Application, including Business Strategy, Community Outcomes (including recommending Methods and Metrics), Management, Capitalization (including securing capital commitments, if necessary), and Past NMTC Experience.

Brochures and Announcements

New Markets Tax Credits for Private Investment Funds and Family Offices

Find out more about New Markets Tax Credits for private investment funds and family offices...

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New Markets Tax Credit (NMTC) Management Services

Learn about our New Markets Tax Credit (NMTC) Management Services, NMTC deployment, compliance & asset...

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Scott Scheffy Joins TAG by Cherry Bekaert to Expand Offerings to Southeast U.S.

TAG by Cherry Bekaert, a practice specializing in the New Markets Tax (“NMTC”) Credit, Historic...

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TAG by Cherry Bekaert Year-End Wrap-up: Grady Health System

Tax Advantage Group (“TAG”) by Cherry Bekaert, a practice specializing in New Markets Tax Credit...

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New Markets Tax Credit (NMTC) Finance Consulting Services

Learn about our New Markets Tax Credit Consulting Services and how we can help your...

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TAG Services Overview

From finding lenders to writing applications for NMTC funding to providing back-office support like compliance,...

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What are New Markets Tax Credits?

Learn more about the New Markets Tax Credit Program. Contact us for guidance on how...

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Cherry Bekaert Expands Credits & Incentives Resources and Capabilities with Acquisition of the Tax Advantage Group (“TAG”)

TAG rebrands to Tax Advantage Group by Cherry Bekaert Cherry Bekaert LLP (“the firm”) is pleased...

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New Markets Tax Credit Management Services

Receiving New Markets Tax Credit allocation is a tremendous accomplishment. Some of the most challenging work toward maintaining funding lies in successful deployment, thorough compliance and asset management, and meticulous accounting and bookkeeping. Cherry Bekaert is one of the few firms in the industry to provide a full suite of  NMTC Management Services to CDEs.

Policies and Procedures (“P&P”)

The Tax Advantage Group creates or supplements a CDE’s P&P to ensure sound management practices throughout the lifecycle of a NMTC investment. These P&P include:

  • Governance
  • Deployment
  • Compliance
  • Asset Management
  • Servicing

Deployment

Faithful adherence to the NMTC application will be the reason the CDE might receive future allocations. It is important to understand all explicit and implied “promises” made in the application and embed them in the deployment of the allocation. We can help deploy NMTC allocation by designing implementing deployment policies to include:

  • Pipeline Management
  • Due Diligence Collection
  • Operating and Advisory Board Procedures NMTC Investors Solicitation
  • Transaction Documents (e.g. reservation letters, performance agreements, Fee Disclosure Forms, Better Rates and Terms documentation)
  • Financial Model Review (required to lead the CDE through successful transaction closings)

Compliance and Asset Management (“CAM”)

Receiving NMTC funding is a tremendous accomplishment but some of the most challenging work toward maintaining funding over its 7-year life lies in thorough CAM procedures. TAG’s CAM expertise is built upon the process we created for our $89 million Greenville New Markets Opportunity LLC affiliate. By applying these same CAM principles to client CDEs, we help ensure successful allocation maintenance. NMTC CAM Policies and Procedures (“P&P”) include:

  • CDE Maintenance,
  • CDFI Fund Reporting Compliance,
  • CDFI Fund Allocation Agreement Compliance, and
  • IRS Compliance.

The Tax Advantage Group’s services are scalable and may be structured to create and train CDE staff on P&P or implement CAM P&P.

Servicing

TAG manages the billing and collection of debt service and fees as required per the transaction documents and directs and manages the transfer of funds between the transaction accounts.

Accounting and Bookkeeping

TAG provides accounting services such as bookkeeping and financial statement preparation and interacts with external accounting resources on all related NMTC tax and audit issues keeping you in financial good standing.

New Market Tax Credit Placement

Often, important community and economic development projects lack funding to reach fruition. By working together, we can support Disadvantaged Businesses and Communities by helping operating businesses, non-profit organizations, real estate developers, and CDEs bridge financial gaps through NMTC financing by:

  • Advised clients on the use of NMTCs
  • Develops strategic positioning and project marketing plans for prospective CDEs
  • Identifies potential NMTC allocation
  • Coordinates the closing of the NMTC transaction and a source of project funding

The Tag Advantage Group by Cherry Bekaert has successfully closed over $877 million of NMTC transactions demonstrating our broad range of project experience including community facilities, manufacturing and distribution facilities, and mixed-use real estate investments.

About The Innovate Fund

Tax Advantage Group (“TAG”) by Cherry Bekaert’s lending affiliate, The Innovate Fund, has a passion for transforming Disadvantaged Businesses and Communities across Georgia, North Carolina, South Carolina, and Tennessee. As a certified CDE, The Innovate Fund and its affiliates have successfully deployed $277 million of NMTC allocation to projects that improve income levels for low-skilled workers and low-income community residents through the creation of quality jobs and/or improve health and wellness outcomes to its service area’s most vulnerable populations.

Case Studies

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Laurel Tinsley

Managing Director, TAG by Cherry Bekaert

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Tammy C. Propst

Founder and Former Managing Director, TAG by Cherry Bekaert

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Peter Byford

TAG Consulting

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Lisa Gibson

Compliance and Asset Management

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