The New Markets Tax Credit (NMTC) Program serves as a powerful catalyst for private investment in low-income communities throughout Massachusetts. From revitalizing historic neighborhoods in Boston to supporting manufacturing facilities in Springfield and advancing healthcare infrastructure across the state, NMTC financing helps bridge the gap between development needs and available capital. CBO Financial partners with developers, nonprofits, and community organizations to structure sophisticated CDFI-based financing solutions that drive sustainable economic growth, create quality jobs, and strengthen communities across the Commonwealth.
How the NMTC Program Works in Massachusetts
The NMTC Program incentivizes private investment by providing a 39% federal tax credit to investors who deploy capital into qualified low-income communities through certified Community Development Entities (CDEs). In Massachusetts, this mechanism has proven particularly effective in sectors where traditional financing falls short—including advanced manufacturing, life sciences facilities, affordable housing developments, educational institutions, and healthcare centers.
Massachusetts benefits from a robust ecosystem of active CDEs and community development financial institutions that understand the Commonwealth’s unique economic landscape. From Gateway Cities seeking downtown revitalization to rural communities in Western Massachusetts pursuing infrastructure improvements, the NMTC program details provide flexible financing structures that can be layered with state and local incentives to maximize project feasibility.
Eligible Projects and Borrowers
NMTC financing in Massachusetts supports a diverse array of community development initiatives. Eligible projects typically include:
Commercial & Mixed-Use Development: Retail centers, office buildings, and mixed-use projects in qualified census tracts that create jobs and anchor neighborhood economies.
Manufacturing & Industrial Facilities: Food production facilities, advanced manufacturing plants, and distribution centers that strengthen the state’s economic base while providing employment opportunities in underserved areas.
Healthcare Infrastructure: Community health centers, specialty care facilities, and medical office buildings that expand access to quality healthcare services in low-income communities.
Educational Institutions: Charter schools, vocational training centers, early childhood education facilities, and higher education campus expansions serving disadvantaged populations.
Nonprofit & Community Facilities: Arts and cultural centers, community centers, and social service facilities that enhance quality of life and provide essential services.
Housing-Related Development: While NMTC cannot finance residential units directly, it can support mixed-income projects where commercial or community facility components qualify.
Eligible borrowers include for-profit developers, nonprofit organizations, community-based entities, and public-private partnerships committed to projects that meet CDFI financing solutions criteria. CBO Financial’s NMTC advisory services help applicants navigate complex eligibility requirements and structure optimal financing packages.
Benefits of the NMTC Program for Massachusetts
The NMTC Program delivers measurable impact across Massachusetts communities:
Job Creation & Retention: NMTC projects generate both construction jobs and permanent employment opportunities in areas with higher-than-average unemployment rates. Many projects commit to hiring locally, providing career pathways for residents in underserved communities.
Private Investment Leverage: The tax credit incentive attracts institutional investors and private capital that might otherwise bypass low-income areas, effectively multiplying the impact of every public dollar invested.
Community Revitalization: NMTC-financed projects often serve as anchors for broader neighborhood transformation, spurring additional private investment and catalyzing long-term economic vitality.
Gap Financing Solution: For projects where traditional financing leaves a gap—whether due to higher development costs, lower projected revenues, or increased risk profiles—NMTC provides the critical capital needed to achieve financial viability.
Long-Term Community Wealth Building: By directing investment into community-serving businesses and facilities, NMTC helps build local wealth and economic resilience rather than extracting resources from vulnerable neighborhoods.
Massachusetts projects have successfully leveraged NMTC financing to preserve historic buildings, expand healthcare access, support local food systems, and create innovation hubs in Gateway Cities. CBO Financial encourages developers and organizations to schedule a free project analysis to explore how NMTC can strengthen project feasibility and community impact.
Regulatory & State Development Framework
Massachusetts offers a supportive environment for NMTC projects through coordinated state-level economic development programs. The Massachusetts Office of Business Development (MOBD), operating within the Executive Office of Housing and Economic Development, provides resources and technical assistance for community development initiatives that align with NMTC objectives. Additionally, MassDevelopment—the state’s finance and development agency—administers various programs that can be effectively layered with NMTC financing, including tax-exempt bond financing and brownfields remediation support.
Several Massachusetts-based CDEs maintain active NMTC allocations and deep knowledge of the Commonwealth’s community development landscape. The U.S. Department of the Treasury’s CDFI Fund oversees the NMTC Program nationally and publishes allocation awards, compliance requirements, and technical guidance essential for project sponsors.
CBO Financial maintains expertise in both federal NMTC regulations and Massachusetts-specific development incentives, ensuring projects achieve full compliance while maximizing available financial support. Our team coordinates across multiple funding sources—including state tax credits, historic preservation incentives, and opportunity zone benefits—to create comprehensive capital stacks that serve project and community goals.
Get Started
If you’re developing a project in a low-income Massachusetts community, NMTC financing may provide the critical capital needed to move from planning to implementation. CBO Financial offers comprehensive support throughout the NMTC process—from initial eligibility assessment and CDE sourcing to transaction structuring and ongoing compliance management.
Our experience spans diverse Massachusetts geographies and project types, giving us insight into what makes applications competitive and how to position projects for success. Whether you’re planning a manufacturing facility in a Gateway City, expanding a community health center, or developing mixed-use space in a qualified opportunity zone, our team can evaluate whether NMTC aligns with your financing strategy.
Contact CBO Financial today to discuss your project and start your NMTC project evaluation. We’ll assess eligibility, identify potential CDE partners, and outline a path forward that maximizes community impact while achieving your development objectives.