The New Markets Tax Credit (NMTC) Program drives strategic investment into Indiana’s evolving communities, from the revitalizing neighborhoods of Indianapolis to the manufacturing towns of the Rust Belt and the agricultural heartland of rural Indiana. As the Hoosier State transitions from traditional manufacturing while maintaining its industrial heritage and developing new economic sectors, NMTC investments play a vital role in ensuring equitable growth across all 92 counties. CBO Financial leverages deep expertise in complex transaction structuring to help Indiana businesses, developers, and nonprofits access this critical financing tool, creating sustainable prosperity in communities that have faced economic challenges while positioning them for future success.
How the NMTC Program Works in Indiana
Indiana’s NMTC implementation capitalizes on the state’s strategic location at the Crossroads of America, where major interstate highways intersect, creating logistics advantages for businesses serving national markets. The program’s 39% federal tax credit over seven years motivates investors to channel capital into Indiana’s qualified low-income communities, which include substantial portions of Gary, South Bend, Fort Wayne, and Evansville, as well as numerous smaller cities that have experienced manufacturing decline. Indiana’s diverse economy, spanning advanced manufacturing, life sciences, logistics, agriculture, and technology, creates varied opportunities for impactful NMTC deployment.
The state’s manufacturing legacy presents both challenges and opportunities for NMTC projects, with former industrial sites offering redevelopment potential while communities seek to attract new employers to replace jobs lost. Healthcare facilities serving aging populations and uninsured residents, educational institutions preparing workers for emerging industries, and mixed-use developments revitalizing downtowns all benefit from NMTC financing. Projects must navigate Indiana’s seasonal climate impacts on construction, workforce readiness challenges in transitioning economies, and infrastructure needs in older communities. Mastering the complexities of financing ensures Indiana projects achieve maximum community benefit while maintaining investor returns.
Since the program’s inception, Indiana communities have received substantial NMTC investments supporting everything from automotive supplier facilities that preserve manufacturing jobs to healthcare centers that ensure rural residents receive quality care. This proven deployment record demonstrates how NMTC financing bridges gaps between community needs and available capital in Indiana’s transitioning economy.
Eligible Projects and Borrowers
Indiana’s NMTC project portfolio reflects the state’s economic evolution, emphasizing developments that preserve manufacturing heritage while fostering diversification. Manufacturing and industrial facilities in qualified census tracts remain priority investments, particularly those in the automotive supply chain, medical device production, and food processing sectors that leverage Indiana’s skilled workforce. Commercial real estate projects, including mixed-use developments that combine retail, office, and residential components in struggling downtowns, attract CDE interest when they catalyze broader revitalization.
Healthcare infrastructure addresses critical needs throughout Indiana, where rural hospital closures threaten access and urban health disparities persist. Community health centers, critical access hospitals, addiction treatment facilities, and mental health clinics utilize NMTC financing to maintain and expand essential services. Educational facilities—from technical training centers aligned with employer needs to early learning centers addressing kindergarten-readiness gaps—leverage these credits to strengthen Indiana’s talent pipeline.
Logistics and distribution facilities that capitalize on Indiana’s transportation advantages consistently secure NMTC support, especially those that create jobs for residents of distressed communities. Agricultural processing operations that add value to Indiana farm products while providing year-round employment represent strategic investments in rural areas. Nonprofit organizations delivering workforce development, youth services, and community support programs can access NMTC financing through CDFI certification processes that ensure alignment with program requirements.
Benefits of the NMTC Program for Indiana
The economic multiplier effects of NMTC investments prove particularly valuable in Indiana communities struggling with manufacturing job losses and population decline. Employment creation through NMTC-financed projects provides crucial alternatives to disappeared factory jobs, often with comparable wages and benefits that enable middle-class lifestyles. These positions span skilled trades, healthcare professions, logistics operations, and service sectors, offering diverse pathways to economic stability for Indiana workers adapting to economic change.
Capital attraction through NMTC incentives brings outside investment to Indiana communities that might otherwise be overlooked by national capital markets. This influx of external funding stimulates local economies through construction spending, supplier contracts, and increased commercial activity, which in turn generates additional investment. The leverage effect enables Indiana communities to undertake transformative projects rather than incremental improvements, creating momentum for sustained revitalization.
Community resilience-building through NMTC projects addresses the fundamental challenges facing Indiana’s transitioning communities. Healthcare facilities prevent service gaps that force residents to travel long distances for care, educational institutions prepare workers for available jobs rather than vanished industries, and community centers provide social infrastructure that maintains quality of life. Business incubators fostering entrepreneurship, brownfield redevelopments eliminating blight, and cultural facilities preserving community identity exemplify comprehensive development approaches. Organizations evaluating project potential can schedule a free project analysis with CBO Financial’s expert team.
Regulatory & State Development Framework
Indiana’s pro-business regulatory environment enhances the effectiveness of federal NMTCs through complementary state programs and regional coordination mechanisms. The Indiana Economic Development Corporation collaborates with CDEs, regional development authorities, and local economic development organizations to identify strategic investment opportunities and streamline project execution. This coordinated approach ensures NMTC investments align with state economic development strategies and regional growth plans.
The Indiana Economic Development Corporation offers various incentive programs that combine effectively with NMTC financing, including Industrial Development Grant Fund awards, Skills Enhancement Fund training grants, and EDGE tax credits. These layered incentives create compelling project economics that attract private investment while maintaining long-term sustainability. CBO Financial maintains relationships with CDEs active in Indiana markets and monitors state policy changes affecting NMTC deployment strategies.
Local governments across Indiana actively court NMTC investment through tax abatements, Tax Increment Financing districts, and infrastructure support. Cities like Indianapolis, Bloomington, and Lafayette have dedicated economic development teams experienced with NMTC requirements who facilitate project approvals and implementation. Rural communities often provide additional incentives, including land contributions, utility upgrades, and workforce training partnerships that demonstrate local commitment to project success.
Get Started
Position your Indiana development project for success with strategic NMTC financing that overcomes market challenges while creating lasting community impact. CBOFinancial’s proven expertise in structuring complex NMTC transactions ensures your project captures the maximum available benefits while efficiently navigating federal compliance requirements. Our team understands Indiana’s evolving economy—from developing to rural sustainability challenges—and maintains strong relationships with CDEs investing throughout the Hoosier State.
Whether redeveloping a brownfield site in Northwest Indiana, establishing a healthcare facility in an underserved Indianapolis neighborhood, or creating a food processing plant in rural Southern Indiana, NMTC Advisory Services Overview from CBO Financial delivers comprehensive guidance from initial feasibility analysis through successful project completion. Contact our team today to explore how NMTC financing can accelerate your community development goals while generating attractive returns for investors committed to Indiana’s continued economic transformation.