New Market Tax Credits

McManimon & Scotland, L.L.C. is on the forefront of structuring transactions involving New Market Tax Credits (NMTC), a highly complex form of financing that can be very advantageous under the proper circumstances. McManimon & Scotland has a level of experience and expertise in this area that no other New Jersey firm can match.

What are New Market Tax Credits?

NMTC is a program created by federal law that provides tax credits to investors that are willing to make qualified equity investments in certain targeted areas, specifically low-income communities. NMTC allows an investor to receive tax credits against earned taxable income over a seven-year period.

Our Services

Our practice delves into all aspects of NMTC, including structuring and assisting in the implementation of appropriate financing models, as well as providing the required tax opinions. We strive to ensure our clients maximize the value of NMTC in all types of transactions.

Who We Serve

Our clients include all types of entities involved in NMTC, including:

• 501(c)(3) nonprofit organizations
• State and local governmental entities
• Quasi-governmental agencies
• Public authorities
• Developers
• Owners
• Operators

Additionally, we have counseled tax credit investors, leveraged lenders, participating lenders and qualified low-income community businesses in NMTC issues.

Combining NMTC & Other Financing

We have had a great deal of success combining NMTCs with other tax credits and financing sources, State and local tax credits, grants and subsidized loans, tax-exempt bond financing, American Recovery and Reinvestment Act of 2009 funds, Community Development Block Grant funds, federal government agency loan guarantees, and conventional financing.

Contact Us

For more information about our New Market Tax Credits practice, please contact Glenn F. Scotland at 973-622-1800.