The New Markets Tax Credit (NMTC) Program drives economic development across Delaware, from Wilmington’s urban neighborhoods to Dover’s growing corridors and the state’s smaller communities experiencing economic transition. As the nation’s first state and a corporate-hub, Delaware offers unique opportunities for NMTC deployment that address economic inequality while leveraging the state’s business-friendly environment, strategic Mid-Atlantic location, and specialized industry clusters. CBO Financial partners with financial services firms, manufacturers, bioscience companies, and community organizations to structure financing solutions supporting Delaware’s continued economic evolution.
Delaware’s economy—characterized by financial services, chemical and pharmaceutical manufacturing, healthcare, agribusiness, and logistics—creates diverse applications for community development investment. The state’s corporate law expertise attracts Fortune 500 headquarters, yet Wilmington and other communities experience concentrated poverty requiring targeted investment. This economic disparity makes understanding NMTC eligibility particularly important for projects serving Delaware’s underserved areas.
How the NMTC Program Works in Delaware
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 Delaware’s three counties.
In Delaware, this financing structure addresses distinct challenges. Wilmington contains neighborhoods experiencing concentrated poverty despite proximity to financial services and employment centers. Dover and smaller communities require economic diversification as traditional industries evolve. State’s compact size—just 96 miles long and less than 35 miles wide—creates advantages for NMTC deployment, enabling projects to access resources statewide while serving specific distressed communities.
The NMTC subsidy—approximately 20% of the qualified equity investment after fees—bridges financing gaps, preventing economically viable projects from achieving financial feasibility. Whether supporting advanced manufacturing in Kent County, developing community healthcare facilities in Wilmington, financing food processing operations that support Delaware agriculture, or creating mixed-use development in smaller cities, NMTC capital enables projects that conventional underwriting rejects despite community need.
Delaware benefits from CDEs serving the region, including Finanta (formerly Community First Fund), which has deployed significant NMTC allocation throughout the greater Philadelphia area, Delaware, and New Jersey since receiving $160 million in allocations since 2013. For comprehensive information about Delaware’s community development finance ecosystem, explore our resources on CDFI loans and capital sources that support economic growth.
Eligible Projects and Borrowers
NMTC financing in Delaware supports diverse community development initiatives aligned with the state’s economic strengths.
Financial Services and Technology projects include fintech operations, insurance technology development, cybersecurity firms, software development companies, data centers, and technology business incubators leveraging Delaware’s corporate law expertise and financial services concentration.
Life Sciences and Healthcare projects encompass pharmaceutical manufacturing, medical device production, biotechnology operations, federally qualified health centers serving urban populations, specialty clinics, behavioral health facilities, and research facilities commercializing innovations from institutions like ChristianaCare and Nemours.
Advanced Manufacturing projects include chemical production, precision manufacturing, food processing, supporting Delaware’s poultry and agricultural industries, packaging operations, and advanced materials manufacturing. Delaware’s manufacturing legacy creates opportunities for modernization and expansion in distressed communities.
Agriculture and Food Systems projects leverage Delaware’s agricultural heritage through food processing operations, cold storage facilities, farmers ‘market infrastructure, value-added agricultural products, and food distribution serving the Mid-Atlantic region.
Commercial and Community Development encompasses downtown revitalization in Wilmington and smaller cities, adaptive reuse of industrial properties, mixed-use developments, grocery stores serving food-desert areas, community centers, and nonprofit facilities.
Logistics and Distribution projects capitalize on Delaware’s strategic location between major Mid-Atlantic markets through warehousing facilities, distribution centers, and transportation infrastructure supporting regional commerce.
Eligible borrowers include for-profit businesses, nonprofit organizations, cooperatives, real estate developers, and community facilities serving qualified low-income communities. Projects must be located in qualifying census tracts and demonstrate measurable community benefit.
CBO Financial provides experienced new market tax credit consultants helping Delaware borrowers navigate qualification requirements, identify appropriate CDEs, and structure transactions optimized for community impact.
Benefits of the NMTC Program for Delaware
The NMTC Program delivers substantial benefits suited to Delaware’s development challenges:
WilminRevitalization in Wilmington requires commercial activity and community facilities. NMTC-financed projects enable downtown revitalization, mixed-use development, and community services accessible to residents.
Manufacturing Modernization Delaware’s chemical and pharmaceutical manufacturers require equipment upgrades and facility expansions to remain competitive. NMTC capital enables modernization while preserving quality employment.
Healthcare Access: Urban and rural Delaware communities face challenges accessing healthcare. NMTC-financed health centers, specialty clinics, and behavioral health facilities bring essential services to underserved populations.
Agricultural Value-Add: Delaware’s poultry industry and agricultural production create opportunities for food processing and distribution infrastructure. NMTC financing supports value-added operations connecting farmers with consumers while creating employment.
Strategic Location Advantage: Delaware’s position between Philadelphia, Baltimore, and Washington, D.C. creates logistics opportunities. NMTC-financed distribution facilities and transportation infrastructure leverage this geographic advantage while serving distressed communities.
Delaware’s small size enables efficient project execution, statewide access to resources, and effective coordination among economic development stakeholders supporting NMTC transactions.
Whether you’re expanding operations, developing community facilities, or creating infrastructure in Delaware, CBO Financial can assess your project’s eligibility and structure financing. Start your project evaluation today.
Regulatory & State Development Framework:
Delaware’s economic development framework supports projects aligned with NMTC objectives. The Delaware Economic Development Authority (DEDA) provides financing, including bond financing, for projects that contribute to the prosperity and welfare of Delaware citizens. Programs administered through the Division of Small Business complement NMTC transactions by providing technical assistance, workforce development resources, and connections to capital sources. Delaware’s Office of Supplier Diversity, housed within the Division of Small Business, offers certification programs for diverse businesses, increasing visibility and opportunity. Delaware’s compact geography enables effective coordination among agencies, municipalities, and economic development organizations supporting NMTC projects. Delaware’s strategic Mid-Atlantic location, business-friendly environment, and absence of sales tax create advantages for businesses choosing to operate in Delaware. These factors, combined with NMTC financing, enable projects serving distressed communities while accessing regional markets.
CBO Financial maintains relationships with CDEs holding allocation authority serving Delaware and specializes in navigating states’ regulatory environments, coordinating with Division of Small Business programs, and structuring comprehensive financing packages that ensure compliance with federal NMTC regulations.
Get Started with NMTC Financing in Delaware
Ready to explore how New Markets Tax Credits can support your Delaware project? Financials’ experienced team understands Delaware’s unique dynamics—its financial services concentration, life sciences expertise, strategic Mid-Atlantic location, manufacturing capabilities, and compact geography, which enable efficient execution—and can structure transactions suited to your circumstances.
From initial feasibility assessment through closing and compliance monitoring, we provide comprehensive support throughout the NMTC process. We evaluate projects considering Delaware-specific factors, including coordination with state programs, proximity to major markets, and opportunities to leverage Delaware’s business advantages.
Contact us today to discover how strategic community development finance can transform your vision into reality while delivering lasting benefits to Delaware’s underserved communities.