Training

New Markets Tax Credits

ED515– New Markets Tax Credits.  This intensive two-day course is designed to take the mystery out of this powerful economic development tool, just renewed by Congress for $7 billion over the next two years.  The course takes you from the basics - what NMTCs are and how they are allocated - through the all-important legal and regulatory parameters, to the financing models that work best and maximize NMTC benefits.  You’ll learn the new NMTC alphabet soup - how to tell a QEI from a QLICI, what a CDE does and what kind of enterprise can be a QALICB.  Case studies and hands-on work take you step-by-step through actual NMTC projects, including commercial real estate, mixed-use development that includes significant amounts of housing, community facilities for non-profits, business financing, and projects that include historic rehabilitation tax credits.  NDC is a recipient of several large NMTC allocations and has developed successful models for applying them to a full range of community development projects.  Participate in this course and begin applying this federal tool to your most pressing economic development needs.  Specific topics include:

New Markets Tax Credits

• Program fundamentals
• Project underwriting
• Investors, lenders, developers and the financing process
• Regulations include the latest updates
• Application requirements
• Finding potential investors
• Recapture of credits

Using NMTCs for Real Estate Development

• Commercial real estate, mixed-use and non-profit facilities projects
• Measuing debt and equity attracted
• Determining the financing gap
• Using NMTCs to close the gap

NMTCs for Business Development Projects

• Measuring repayment ability
• Structuring gap financing using NMTCs

Program Models

• Levered equity model—publc sector, conventional lender, private investor
• Debt service subsidy model
• Historic Rehabilitation Tax Credits and NMTCs

Prerequisite:  None