The New Markets Tax Credit (NMTC) Program plays a vital role in channeling private investment into low-income communities throughout Michigan. From revitalizing Detroit’s urban neighborhoods to supporting manufacturing operations in Flint, Saginaw, and Grand Rapids, NMTC financing addresses critical capital gaps that prevent transformative community development. CBO Financial collaborates with developers, manufacturers, nonprofits, and community-based organizations to deliver CDFI-backed financing solutions that foster sustainable economic growth, generate quality employment opportunities, and rebuild Michigan’s communities for long-term prosperity.
How the NMTC Program Works in Michigan
The NMTC Program incentivizes qualified equity investments by offering a 39% federal tax credit to investors who deploy capital into designated low-income communities through certified Community Development Entities (CDEs). In Michigan, this financing tool has proven essential across multiple sectors where conventional lending cannot adequately serve community needs—including advanced manufacturing, healthcare facilities, food production, mixed-use commercial development, and educational infrastructure.
Michigan’s economic landscape features both legacy industrial cities undergoing transformation and rural communities seeking new economic foundations. The state hosts numerous active CDEs with deep expertise in Michigan’s unique development challenges and opportunities. From automotive supplier facilities in metro Detroit to agricultural processing plants in rural counties, new markets tax credit financing offers flexible structures that complement state incentives and local economic development programs to make challenging projects financially viable.
Eligible Projects and Borrowers
NMTC financing supports diverse community development initiatives across Michigan’s varied economic regions. Eligible projects typically include:
Manufacturing & Industrial Operations: Automotive suppliers, food processing facilities, advanced manufacturing plants, and logistics centers that create jobs while strengthening Michigan’s industrial base in qualifying communities.
Mixed-Use & Commercial Real Estate: Grocery stores, retail centers, office buildings, and mixed-use developments that serve as economic anchors in downtown districts and neighborhood commercial corridors.
Healthcare Infrastructure: Federally Qualified Health Centers (FQHCs), specialty medical facilities, dental clinics, and behavioral health centers that expand healthcare access in medically underserved areas.
Educational & Workforce Development: Charter schools, career technical training centers, early learning facilities, and community colleges serving disadvantaged student populations.
Community Facilities: Cultural centers, performing arts venues, recreation facilities, and nonprofit service centers that enhance community vitality and provide essential programming.
Food System Projects: Urban farms, food hubs, commercial kitchens, and healthy food retail addressing food access challenges in low-income neighborhoods.
Eligible borrowers span for-profit enterprises, nonprofit organizations, community development corporations, and public-private partnerships committed to projects meeting CDFI financing requirements. CBO Financial’s NMTC advisory support guides applicants through eligibility verification, census tract qualification, and optimal financing architecture to maximize project success.
Benefits of the NMTC Program for Michigan
The NMTC Program delivers substantial community and economic benefits throughout Michigan:
Job Creation & Economic Opportunity: NMTC projects generate construction employment and permanent jobs in areas experiencing disinvestment and elevated unemployment. Many projects establish local hiring commitments, creating pathways to family-sustaining careers for Michigan residents.
Capital Attraction: The tax credit incentive draws institutional investors and private capital into Michigan communities that traditional markets have overlooked, effectively leveraging public resources to multiply community investment impact.
Downtown & Neighborhood Revitalization: NMTC-financed anchor projects catalyze broader redevelopment efforts, attracting subsequent private investment and reversing cycles of disinvestment in Michigan’s urban cores and central street districts.
Gap Financing Solution: For projects where development costs exceed what cash flow can support through conventional financing—whether due to higher construction expenses, lower market rents, or environmental remediation needs—NMTC provides essential gap capital that enables project completion.
Community Wealth Building: By directing patient capital into businesses and facilities that serve local needs, NMTC helps build community-owned assets and economic resilience rather than extracting wealth from vulnerable areas.
Michigan projects have successfully deployed NMTC financing to restore historic buildings, expand healthcare networks, support locally-owned manufacturing, develop innovation hubs, and create fresh food access in underserved neighborhoods. CBO Financial invites project sponsors to request a free project analysis to explore how NMTC can enhance project feasibility while maximizing community benefit.
Regulatory & State Development Framework
Michigan maintains robust state-level support for community economic development that complements federal NMTC financing. The Michigan Economic Development Corporation (MEDC) serves as the state’s primary economic development agency, administering incentive programs that can be effectively layered with NMTC, including community development block grants, brownfield tax increment financing, and transformational brownfield plans. The MEDC’s Community Development team focuses explicitly on place-based strategies in underserved communities where NMTC projects typically locate.
Michigan also benefits from multiple locally-based CDEs maintaining active NMTC allocations and intimate knowledge of the state’s economic geography. The U.S. Department of the Treasury’s CDFI Fund oversees national NMTC Program administration, publishing allocation awards, compliance guidance, and technical resources essential for successful project implementation.
CBO Financial maintains comprehensive expertise in federal NMTC requirements alongside Michigan-specific development incentives and financing tools. Our team coordinates across multiple capital sources—including state tax credits, historic preservation incentives, opportunity zone benefits, and local economic development funds—to construct integrated financing solutions that serve both project economics and community development objectives.
Get Started
If you’re planning a community development project in a qualifying Michigan location, NMTC financing may provide the catalytic capital necessary to advance from concept to completion. CBO Financial delivers end-to-end support throughout the NMTC process—from initial project assessment and census tract qualification to CDE partner identification, transaction structuring, and ongoing compliance coordination.
Our experience across Michigan’s diverse regions and project types provides valuable insight into competitive positioning and what makes applications successful with CDE allocatees. Whether you’re expanding a manufacturing operation in a legacy industrial city, developing a community health center in a rural county, or creating mixed-use space in an urban opportunity zone, our team can evaluate NMTC alignment with your capital strategy.
Connect with CBO Financial today to discuss your Michigan project and apply for NMTC financing evaluation. We’ll assess eligibility requirements, identify appropriate CDE partners, and chart a financing pathway that maximizes community impact while achieving your development goals.