The New Markets Tax Credit (NMTC) Program catalyzes economic revitalization across Montana’s rural communities and underserved urban centers. From Billings to Missoula, and throughout the state’s Qualified Census Tracts, this federal incentive mobilizes private capital to support projects that would otherwise struggle to secure traditional financing. CBO Financial partners with Montana developers, tribal enterprises, and nonprofit organizations to structure NMTC transactions that deliver lasting community impact while preserving the state’s unique character and economic diversity.
Montana’s economy—anchored by agriculture, tourism, energy, and emerging technology sectors—presents distinct opportunities for NMTC deployment. The program’s 39% federal tax credit incentivizes investors to fund projects in low-income communities, effectively reducing the cost of capital for borrowers and making previously unfeasible developments financially viable. Whether you’re expanding healthcare access in frontier counties, building manufacturing capacity, or developing mixed-use facilities that serve tribal communities, understanding how to leverage NMTC financing can transform your project from concept to completion.
How the NMTC Program Works in Montana
The NMTC Program operates through Community Development Entities (CDEs) certified by the U.S. Treasury’s CDFI Fund. These CDEs receive allocation authority to make Qualified Low-Income Community Investments (QLICIs) in eligible census tracts throughout Montana. Investors who provide capital to CDEs receive a 39% tax credit claimed over seven years—5% annually for the first three years and 6% annually for the remaining four years.
In Montana, NMTC financing typically benefits projects located in census tracts with a poverty rate exceeding 20% or a median family income below 80% of the area median. This encompasses significant portions of the state, including most tribal lands, portions of Billings and Great Falls, and numerous rural communities facing persistent economic challenges. The program supports a wide range of sectors critical to Montana’s economy: healthcare facilities serving frontier populations, food processing and agricultural infrastructure, manufacturing operations, renewable energy projects, and community facilities that provide essential services.
CBO Financial works with both national and regional CDEs to identify allocation sources best suited to Montana projects. We navigate the complex federal compliance requirements while ensuring projects align with state economic development priorities. To determine whether your project qualifies for NMTC program support, our team evaluates eligible census tracts, job-creation potential, and community-impact metrics specific to Montana’s development landscape.
Eligible Projects and Borrowers
Montana projects eligible for NMTC financing span diverse categories, each addressing critical community needs. Healthcare projects—including rural hospital expansions, specialty clinics, and behavioral health facilities—qualify when serving populations with limited access to medical services. Manufacturing and food processing facilities that create quality jobs in economically distressed areas represent another priority category, particularly those supporting Montana’s agricultural value chain or leveraging the state’s natural resources sustainably.
Community facilities such as charter schools, childcare centers, workforce training facilities, and mixed-use developments that combine commercial space with community services also qualify. Renewable energy projects, including solar installations and biomass facilities that reduce energy costs for low-income residents, align well with NMTC program objectives. Tribal enterprises developing economic infrastructure on reservation lands find NMTC particularly valuable given the challenges of accessing conventional financing in these areas.
Eligible borrowers include for-profit businesses, nonprofit organizations, tribal entities, and local government authorities undertaking qualified projects. The company must operate substantially within a low-income community and demonstrate that the NMTC financing enables a project that wouldn’t proceed otherwise. CBO Financial specializes in CDFI financing structures that combine NMTC with other capital sources—conventional debt, equity, grants, and complementary incentives—to create comprehensive funding packages tailored to Montana projects.
Benefits of the NMTC Program for Montana
The NMTC Program delivers measurable economic benefits to Montana communities while providing borrowers with advantageous financing terms. The 39% tax credit effectively reduces borrowing costs, often allowing projects to secure debt service coverage ratios that satisfy lenders while maintaining operational viability. For capital-intensive projects in sectors such as healthcare or manufacturing, this cost reduction can be the difference between feasibility and abandonment.
Beyond financial mechanics, NMTC projects generate substantial community benefits. Job creation remains a primary metric—projects typically commit to creating or retaining positions accessible to low-income individuals. In Montana’s rural context, even modest job creation carries an outsized impact given limited employment alternatives. Projects also leverage significant private investment—every dollar of NMTC allocation typically attracts several dollars of additional capital, multiplying the program’s economic effect.
The program particularly benefits Montana’s tribal communities, where access to capital remains constrained and the need for economic development infrastructure is acute. NMTC has funded tribal healthcare facilities, manufacturing operations, tourism infrastructure, and food systems development across Indian Country. These investments not only provide essential services but also build wealth within communities that have historically faced systematic barriers to capital access.
Montana businesses and nonprofits using NMTC financing gain access to patient capital with flexible terms. Unlike conventional loans requiring immediate full debt service, NMTC structures often feature initial interest-only periods, allowing projects to stabilize operations before principal payments commence. This flexibility proves especially valuable for projects with extended development timelines or those serving markets with limited immediate revenue potential. To evaluate how NMTC could benefit your Montana project, schedule a free project analysis with CBO Financial’s team.
Regulatory & State Development Framework
Montana’s economic development ecosystem supports NMTC deployment through various state-level programs and agencies. The Montana Department of Commerce administers programs that often complement NMTC financing, including the Big Sky Economic Development Trust Fund, the Primary Sector Business Tax Credit, and various infrastructure grant programs. Understanding how to layer state incentives with federal NMTC benefits can significantly enhance project economics.
Tribal economic development authorities, including those serving the Blackfeet Nation, Crow Nation, Northern Cheyenne, and other Montana tribes, increasingly utilize NMTC financing for reservation-based projects. The Montana Office of Indian Affairs works to facilitate these investments, recognizing that NMTC provides crucial capital access for tribal enterprises.
CBO Financial maintains expertise in both federal NMTC compliance and Montana’s state regulatory environment. We ensure projects meet Treasury requirements while maximizing available state and local incentives. Our approach includes coordinating with Montana-based CDEs when available and leveraging national CDEs with allocation available for Montana projects. This dual-track strategy increases the likelihood of securing NMTC allocation in a competitive national environment where demand consistently exceeds available credits.
For projects requiring environmental permits, energy efficiency certifications, or other state regulatory approvals, we coordinate timing to ensure NMTC closing requirements align with state processes. Montana’s Business Ready Community program and various county-level economic development initiatives can provide additional support, and we help clients navigate these resources effectively.
Get Started with NMTC Financing in Montana
If you’re developing a project in a Montana low-income community—whether on tribal lands, in rural towns, or within distressed urban neighborhoods—NMTC financing deserves serious consideration. The program’s ability to reduce capital costs while attracting investment to underserved areas makes it uniquely powerful for Montana’s economic development challenges.
CBO Financial’s process begins with project eligibility assessment: evaluating census tract qualification, analyzing community impact potential, and determining NMTC suitability relative to alternative financing structures. We then develop a customized capital stack that may include NMTC alongside conventional debt, new markets tax credit consultant services, state incentives, and equity. Our Montana clients benefit from our established relationships with CDEs, investors, and lenders active in the state, streamlining what can otherwise be a lengthy and complex process.
Don’t let Montana’s rural geography or small project size deter you from exploring NMTC. While the program often finances large urban projects in coastal markets, Montana transactions—from $3 million to $30 million—regularly close using creative structuring approaches. The key is early engagement with experienced advisors who understand both NMTC mechanics and Montana’s unique development context. Contact CBO Financial today to discover how NMTC can make your Montana community development project a reality.