The New Markets Tax Credit (NMTC) Program provides critical financing for economic development projects across Oklahoma’s diverse communities. From Oklahoma City’s revitalizing urban neighborhoods to Tulsa’s innovation districts, from tribal lands throughout the state to rural communities facing agricultural and energy sector transitions, NMTC financing enables transformative investments in areas where conventional lending remains inadequate. CBO Financial partners with Oklahoma developers, tribal enterprises, energy sector companies, healthcare providers, and community organizations to structure financing solutions that strengthen the Sooner State’s economy while addressing unique challenges, including economic volatility in energy-dependent regions, infrastructure needs on tribal lands, and persistent rural poverty. Oklahoma’s evolving economy—characterized by energy production, aerospace and defense, agriculture, biotechnology, advanced manufacturing, and information technology—creates substantial opportunities for strategic NMTC deployment. The program delivers a 39% federal tax credit to investors who provide capital to qualified projects in low-income communities, significantly reducing borrowing costs and making economically vital projects financially feasible. Whether you’re expanding aerospace manufacturing capacity, developing healthcare facilities in rural counties, creating economic development projects on tribal lands, or revitalizing downtown districts in cities like Norman or Lawton, NMTC financing can provide the capital advantage necessary to move your project forward.
How the NMTC Program Works in Oklahoma
The NMTC Program functions through certified Community Development Entities (CDEs) authorized by the U.S. Treasury’s CDFI Fund to make Qualified Low-Income Community Investments (QLICIs) throughout Oklahoma. Projects must be situated in census tracts where the poverty rate exceeds 20% or the median family income falls below 80% of the area median. Investors providing equity to CDEs receive tax credits totaling 39% over seven years—5% annually for the first three years and 6% annually for the remaining four years.
Oklahoma contains extensive eligible geography spanning urban areas, rural communities, and tribal lands. Oklahoma City and Tulsa, the state’s two largest cities, feature numerous qualifying census tracts throughout their metro areas. Smaller cities, including Norman, Lawton, Broken Arrow, Edmond, and Midwest City, contain eligible tracts experiencing various economic pressures. Rural Oklahoma—particularly counties in the southeastern region, the Panhandle, and along the Red River—presents widespread NMTC opportunities due to agricultural transition, limited economic diversification, and population decline.
Tribal lands represent exceptionally significant NMTC opportunities in Oklahoma. The state is home to 39 federally recognized tribes, including the Cherokee Nation, Chickasaw Nation, Choctaw Nation of Oklahoma, Muscogee (Creek) Nation, and Seminole Nation—collectively known as the Five Tribes—as well as numerous other tribal nations. These tribal jurisdictions encompass substantial territory throughout the state where conventional capital access remains constrained and unemployment rates on tribal lands significantly exceed state averages.
The program supports sectors fundamental tOklahoma’s economic priorities: aerospace and defense manufacturing, energy sector diversification projects, agricultural processing and value-added facilities, healthcare and behavioral health infrastructure, advanced manufacturing operations, renewable energy projects, tourism and cultural heritage facilities, technology and innovation spaces, and community facilities serving rural and tribal populations. CBO Financial connects Oklahoma projects with regional and national CDEs, navigating compliance requirements while ensuring projects advance new market tax credit objectives and state economic development goals.
Eligible Projects and Borrowers
Oklahoma projects eligible for NMTC financing address critical infrastructure and economic development needs across multiple sectors. Aerospace and defense projects leverage Oklahoma’s significant concentration of military installations and aviation companies. Aircraft component manufacturing, maintenance, repair, and overhaul facilities, aerospace engineering services, and defense contractor operations qualify when located in eligible census tracts and create accessible employment opportunities. Oklahoma’s aerospace cluster, anchored by Tinker Air Force Base and companies throughout the state, creates substantial supply chain opportunities for NMTC-financed operations.
Healthcare infrastructure projects remain a high priority given Oklahoma’s challenge of maintaining healthcare access across rural areas and on tribal lands. Rural hospital stabilization and expansion projects, federally qualified health centers, Indian Health Service facility improvements, specialty clinics, behavioral health treatment centers, and dental facilities all qualify when serving underserved populations. Oklahoma’s challenges with maternal mortality, diabetes prevalence in tribal communities, and rural healthcare provider shortages make healthcare facilities particularly compelling NMTC candidates.
Agricultural processing and value-added facilities represent a natural fit given Oklahoma’s agrarian economy. Meat processing operations, grain handling and storage facilities, specialty food production, dairy product manufacturing, and farm-to-market infrastructure qualify when serving low-income communities and creating jobs. The state’s significant cattle industry and diverse agricultural output create opportunities for value-added processing that keep economic benefits within Oklahoma.
Advanced manufacturing facilities producing precision components, industrial equipment, or other goods qualify when demonstrating job creation in low-income communities. Energy sector diversification projects—including renewable energy equipment manufacturing, energy efficiency technology production, and facilities supporting Oklahoma’s transition beyond petroleum dependence—qualify for NMTC support. Wind energy component manufacturing leverages Oklahoma’s position as a leading wind energy producer.
Technology and innovation spaces—including business incubators, accelerators, coworking facilities, and research centers—qualify when supporting economic diversification in communities dependent on cyclical energy industries. Educational facilities such as tribal schools, charter schools, early childhood education centers, and workforce training facilities address academic needs and qualify for financing.
Tourism and cultural heritage facilities—including museums preserving Native American history, performing arts venues, cultural centers, and hospitality infrastructure—support Oklahoma’s tourism economy while honoring the state’s rich cultural heritage. Downtown revitalization projects in Oklahoma’s smaller cities—Enid, Muskogee, Shawnee, Ardmore, Ponca City—leverage NMTC to restore aging commercial districts and create modern business infrastructure.
Eligible borrowers include for-profit businesses, nonprofit organizations, tribal entities and enterprises, and local government authorities. Tribal projects require specialized structuring given the unique jurisdictional considerations on tribal lands. CBO Financial creates comprehensive capital packages leveraging CDFI program resources that combine NMTC with conventional debt, equity, tribal lending programs, Oklahoma Department of Commerce incentives, USDA financing for agricultural and rural projects, and other complementary sources tailored to Oklahoma’s development landscape.
Benefits of the NMTC Program for Oklahoma
The NMTC Program delivers tangible economic benefits to Oklahoma communities while providing borrowers with advantageous financing structures. The 39% tax credit substantially reduces effective capital costs, often enabling projects to achieve debt service coverage acceptable to lenders while maintaining operational viability. For capital-intensive projects common in Oklahoma—aerospace manufacturing facilities, agricultural processing plants, healthcare campuses—this cost reduction frequently determines whether projects proceed or remain on hold.
Beyond financial mechanics, NMTC investments generate significant community impact. Job creation and retention constitute primary program objectives, with projects committing to creating positions accessible to low-income individuals. In Oklahoma’s rural counties and on tribal lands, where employment alternatives are limited and economic opportunity concentrates in urban areas, job creation carries substantial importance for community economic stability and population retention.
Oklahoma’s tribal nations benefit substantially from NMTC’s improved capital access. Projects on tribal lands have utilized NMTC financing for healthcare facilities, cultural tourism enterprises, agricultural ventures, manufacturing operations, and commercial developments. These investments build wealth and economic infrastructure in tribal communities, supporting sovereignty and economic self-determination. The ability to finance projects that honor cultural values while creating economic opportunity makes NMTC particularly valuable for tribal economic development.
NMTC projects catalyze significant private investment—each allocation dollar typically attracts multiple additional capital dollars, multiplying the program’s economic effect. This leverage proves especially important in Oklahoma’s capital environment, where conventional lenders may perceive elevated risk in rural projects or on tribal lands. The program’s track record helps attract investors who might otherwise avoid these markets.
Oklahoma’s smaller communities particularly benefit from NMTC’s ability to finance projects serving essential community needs despite challenging economics. A grocery store in a rural town, a healthcare clinic serving tribal members, a manufacturing facility in a former oil-dependent community, or downtown revitalization in a declining city becomes feasible through NMTC’s cost reduction.
The program provides patient capital with flexible repayment terms. Unlike conventional loans requiring immediate full debt service, NMTC structures often feature interest-only periods during initial years, allowing projects to stabilize operations before principal payments commence. This flexibility proves especially valuable for projects in Oklahoma’s cyclical economy or those with extended development timelines. To evaluate your Oklahoma project’s NMTC potential, get started with a free project analysis through CBO Financial’s specialized team.
Regulatory & State Development Framework
Oklahoma’s economic development infrastructure supports NMTC deployment through various state-level programs and agencies. The Oklahoma Department of Commerce administers incentive programs that complement NMTC financing, including the Quality Jobs Program, Oklahoma Investment/New Jobs Tax Credit, small business support programs, and various industry-specific initiatives. Understanding how to layer these state incentives with federal NMTC benefits can significantly enhance project economics.
The Oklahoma Incentive Approval Authority coordinates various business incentive programs and can facilitate connections to appropriate state resources. For manufacturing projects, the Oklahoma Manufacturing Alliance provides technical assistance and connections to supply chains that can strengthen NMTC applications.
For tribal projects, the Oklahoma Indian Affairs Commission facilitates coordination between tribal governments, state agencies, and federal programs. Individual tribal nations maintain economic development offices and lending institutions that can complement NMTC transactions. The Inter-Tribal Council of the Five Civilized Tribes and other intertribal organizations work to advance economic development across Indian Country in Oklahoma.
For agricultural projects, the Oklahoma Department of Agriculture, Food, and Forestry administers programs that may complement NMTC financing. USDA programs administered through Oklahoma’s state office, including Business & Industry Loan Guarantees, Rural Energy for America Program, and Value-Added Producer Grants, often work alongside NMTC structures for agricultural and rural projects.
Regional economic development organizations—including the Greater Oklahoma City Chamber, Tulsa Regional Chamber, various tribal economic development authorities, and county and municipal development entities—provide project support and help identify available local incentives. For aerospace projects, partnerships with organizations supporting the state’s aerospace cluster can give validation and connections.
CBO Financial ensures projects meet both federal NMTC compliance requirements and Oklahoma’s state regulatory framework. We coordinate timing between NMTC closing schedules, Oklahoma Department of Commerce incentive applications, tribal government approvals for projects on tribal lands, environmental reviews, and local approval processes. Our experience with tribal projects includes navigating Bureau of Indian Affairs requirements, tribal employment rights ordinances, and the specialized considerations for trust land and restricted fee land transactions. This integrated approach prevents delays and ensures all financing components align properly.
Get Started with NMTC Financing in Oklahoma
If you’re developing a project in an Oklahoma low-income community—whether on tribal lands, in Oklahoma City or Tulsa’s urban neighborhoods, or in rural communities across the state—NMTC financing deserves serious consideration. The program’s capacity to reduce capital costs while directing investment to underserved areas makes it uniquely powerful for addressing Oklahoma’s development challenges, particularly supporting tribal economic development, managing energy sector volatility, and maintaining viability in rural areas.
CBO Financial’s process begins with a comprehensive project assessment: verifying census tract eligibility, analyzing community impact potential, evaluating NMTC suitability relative to other financing options, including state incentives and tribal resources, and identifying optimal CDE partners. We then develop customized capital stacks that may combine NMTC with conventional debt, equity investments, Oklahoma Department of Commerce incentives, tribal lending programs for projects on tribal lands, and USDA programs for agricultural and rural initiatives.
Oklahoma clients benefit from our established relationships with CDEs, tax credit investors, and lenders active in Oklahoma and tribal markets. We understand Oklahoma’s unique development context—the importance of tribal sovereignty and nation-to-nation relationships, the aerospace cluster’s supply chain opportunities, the energy sector’s cyclicality, the challenges of rural healthcare access, and the cultural considerations essential to successful community development. This Oklahoma-specific expertise streamlines the NMTC process and increases allocation success rates.
Project size shouldn’t deter NMTC exploration. Oklahoma transactions ranging from $2 million to $50 million regularly close using creative structuring approaches tailored to the state’s markets. The key is early engagement with experienced advisors who understand both NMTC mechanics and Oklahoma’s specific development landscape. Connect with nmtc services, Washington, d.c. Professionals at CBO Financial today to discover how NMTC can transform your Oklahoma community development vision into reality.