The New Markets Tax Credit (NMTC) Program fuels economic development across Arizona, from the Phoenix metropolitan area and Tucson to rural communities throughout the state’s diverse regions. As one of the nation’s fastest-growing states, Arizona presents unique opportunities for NMTC deployment in emerging industries, tribal communities, and neighborhoods experiencing rapid demographic change. CBO Financial partners with manufacturers, healthcare providers, technology companies, and community organizations to structure financing solutions that capitalize on Arizona’s growth trajectory while addressing persistent economic challenges in underserved areas.
Arizona’s economy—characterized by advanced manufacturing, semiconductor production, aerospace, bioscience, tourism, and renewable energy—creates compelling opportunities for strategic community development investment. The state’s position as a national leader in semiconductor manufacturing, with major expansions by TSMC and Intel that are creating tens of thousands of jobs, demonstrates the scale of the economic transformation underway. However, this growth has not reached all communities equally, leaving significant opportunity for new markets tax credit capital to support projects serving Arizona’s most economically distressed neighborhoods.
How the NMTC Program Works in Arizona
The NMTC Program incentivizes private capital investment by providing federal tax credits to investors who support qualified businesses and real estate projects in designated low-income census tracts. Community Development Entities (CDEs) certified by the U.S. Treasury’s CDFI Fund receive allocation authority to deploy tax credit equity into qualifying projects throughout Arizona’s urban centers, border communities, tribal lands, and rural areas.
In Arizona, this financing structure addresses several distinct market challenges. Despite rapid population growth and economic expansion, many Phoenix and Tucson neighborhoods experience disinvestment, lack access to essential services, and face barriers to conventional financing. Border communities like Nogales, Douglas, and Yuma serve as critical international trade gateways but struggle with high poverty rates and limited capital access. Arizona’s 22 federally recognized tribes occupy substantial land areas but often lack infrastructure, healthcare facilities, and commercial development necessary for economic self-determination. Rural communities throughout Arizona face persistent poverty, healthcare access challenges, and declining traditional industries.
The NMTC subsidy—approximately 20% of the qualified equity investment after fees—helps bridge financing gaps that prevent projects in these communities from achieving financial viability. Whether supporting a manufacturing facility expansion in a distressed Phoenix neighborhood, developing a healthcare center on tribal land, or creating a food distribution facility in rural Arizona, NMTC capital makes feasible projects that conventional lenders decline due to perceived market risk despite strong community need and economic potential.
Organizations seeking broader community development resources can explore our comprehensive CDFI overview, which covers multiple financing programs supporting economic growth in underserved markets.
Eligible Projects and Borrowers
NMTC financing in Arizona supports diverse community development initiatives aligned with the state’s economy and community needs.
Advanced Manufacturing and Technology projects include semiconductor fabrication support facilities, aerospace component manufacturing, electronics assembly operations, food processing and distribution centers, and technology incubators supporting Arizona’s growing startup ecosystem. The state’s emergence as “Silicon Desert” creates opportunities for NMTC-financed supplier facilities, research and development space, and workforce training centers supporting the semiconductor industry.
Healthcare and Social Services projects address critical access gaps through federally qualified health centers in underserved neighborhoods, behavioral health facilities addressing Arizona’s substance abuse and mental health challenges, dental clinics serving low-income populations, skilled nursing facilities for aging populations, and community centers providing wraparound services. Arizona’s substantial rural and tribal populations benefit particularly from NMTC-financed healthcare infrastructure, which brings services to communities that previously required long-distance travel for basic care.
Commercial and Community Facilities include downtown revitalization projects in older Phoenix and Tucson neighborhoods, mixed-use developments combining affordable housing with retail and services, grocery stores and fresh food distribution in food desert areas, childcare facilities supporting working families, and cultural centers preserving Hispanic and Native American heritage. Border communities benefit from NMTC-financed infrastructure supporting international trade and commerce.
Renewable Energy and Sustainability projects leverage Arizona’s solar resource—among the nation’s strongest—through commercial solar installations, energy storage facilities, electric vehicle infrastructure, and sustainable agriculture operations that address water scarcity through innovative irrigation and greenhouse technologies.
Eligible borrowers include for-profit businesses, nonprofit organizations, tribal entities, Native American-owned businesses, real estate developers, and community facilities serving qualified low-income communities. Projects must be located in qualifying census tracts and demonstrate measurable community benefit through job creation, service provision to low-income populations, or economic revitalization.
CBO Financial provides experienced NMTCA advisory, helping Arizona borrowers navigate qualification requirements, identify appropriate CDEs with Arizona allocation authority, and structure transactions optimized for community impact and financial performance.
Benefits of the NMTC Program for Arizona
The NMTC Program delivers substantial benefit,s particularly suited to Arizona’s development opportunities and challenges:
Supporting Rapid Growth Markets: Arizona’s population growth—adding 500,000 residents between 2020 and 2024—creates infrastructure needs that NMTC capital helps address. Schools, healthcare facilities, commercial centers, and community services must expand to serve growing populations in communities where property values and tax bases lag development needs. NMTC financing enables essential infrastructure development that supports sustainable growth.
Tribal Economic Development: Arizona’s 22 federally recognized tribes occupy nearly 28% of the state’s land area but face substantial economic challenges. NMTC capital supports tribal enterprises, healthcare facilities, hospitality developments, renewable energy projects, and commercial infrastructure on tribal lands, advancing economic self-determination and improving quality of life for Native American communities.
Border Community Investment: Arizona’s border communities serve as critical trade gateways, handling billions in annual commerce, but experience high poverty rates and limited private investment. NMTC financing supports logistics facilities, commercial development, workforce training centers, and community infrastructure, re-strengthening these economically vital regions.
Workforce Development: Arizona’s semiconductor and advanced manufacturing expansion creates demand for trained workers that existing educational infrastructure struggles to meet. NMTC-financed training facilities, technical colleges, and apprenticeship programs prepare Arizona residents for careers in high-growth industries while addressing employer workforce needs.
Climate Adaptation: Arizona’s extreme heat and water scarcity require innovative solutions. NMTC supports renewable energy installations that reduce energy costs, improve water infrastructure, increase funding for energy efficiency, and protect vulnerable populations from heat-related illness.
Whether you’re expanding manufacturing operations, developing healthcare facilities, or creating community infrastructure, CBO Financial can assess your project’s eligibility and structure financing suited to Arizona’s market conditions—requesta project evaluation to explore your options.
Regulatory & State Development Framework
Arizona’s economic development framework supports projects aligned with NMTC objectives by enabling agencies to understand the state’s growth dynamics and community needs. The Arizona Commerce Authority serves as the state’s lead economic development organization, using a three-pronged approach—recruit, grow, create—to advance the overall economy. The Authority offers financing programs, workforce development resources, and incentives that often complement NMTC transactions, reducing project costs and improving feasibility.
Phoenix Community Development & Investment Corporation (PCDIC), a locally based CDE, has received multiple NMTC allocations from the U.S. Treasury and focuses its investments on community facilities within Maricopa County that address workforce development, healthcare access, education, and homelessness. PCDIC’s successful deployment of NMTC capital in projects such as the St. Mary’s Food Bank expansion, Child Crisis Arizona facilities, and healthcare centers serving tribal communities demonstrates Arizona’s capacity to structure impactful transactions.
Arizona’s tribal governments and economic development authorities provide support for projects on tribal lands, navigating unique regulatory requirements and coordinating with federal agencies. The state’s regional planning organizations, local economic development corporations, and workforce development boards offer resources supporting project planning and execution.
CBO Financial maintains relationships with CDEs holding Arizona allocation authority and specializes in navigating the state’s regulatory environment, tribal consultation requirements, and coordination with state and local incentive programs. Our team structures comprehensive financing packages that maximize available resources while ensuring compliance with federal NMTC regulations.
Get Started with NMTC Financing in Arizona
Ready to explore how New Markets Tax Credits can support your Arizona project? CBO Financial’s experienced team understands Arizona’s unique market dynamics—rapid growth, tribal economic development opportunities, border community needs, and emerging industry requirements—and can structure transactions suited to your specific circumstances.
From initial feasibility assessment through closing and compliance monitoring, we provide comprehensive support throughout the NMTC process. We evaluate projects considering Arizona-specific factors, including tribal sovereignty issues, heat and water considerations, workforce availability in high-growth industries, and coordination with state economic development programs.
Contact us today to discover how strategic community development finance can transform your vision into reality while delivering lasting benefits to Arizona’s underserved communities.