The New Markets Tax Credit (NMTC) Program unlocks essential capital for community development projects across Oregon’s diverse economic landscape. From Portland’s urban neighborhoods to Eugene’s innovation corridors, from the timber-dependent communities of rural Oregon to tribal lands throughout the state, NMTC financing enables transformative investments in areas where traditional capital markets fall short. CBO Financial collaborates with Oregon developers, technology companies, advanced manufacturers, healthcare providers, and community organizations to structure financing solutions that strengthen the state’s economy while addressing persistent challenges in timber-transition communities, coastal regions, and eastern Oregon’s rural areas.
Oregon’s dynamic economy—characterized by technology and software, advanced manufacturing, clean energy, outdoor recreation, agriculture, forestry products, and healthcare—creates substantial opportunities for strategic NMTC deployment. The program provides a 39% federal tax credit to investors who deploy capital in qualified low-income communities, significantly reducing borrowing costs and enabling projects that serve critical community needs. Whether you’re developing clean technology manufacturing facilities, expanding healthcare access in frontier counties, creating mixed-use developments in Salem or Bend, or building economic infrastructure on tribal lands, NMTC financing delivers the capital advantage necessary for project success in Oregon’s competitive markets.
How the NMTC Program Works in Oregon
The NMTC Program operates through certified Community Development Entities (CDEs) authorized by the U.S. Treasury’s CDFI Fund to make Qualified Low-Income Community Investments (QLICIs) throughout Oregon. Projects must be located 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 subsequent four years.
Oregon contains extensive eligible geography across its metropolitan areas, smaller cities, and rural communities. Portland, the state’s largest city, features numerous qualifying census tracts in North Portland, East Portland, and throughout the metro area. Eugene, Salem, Gresham, and Medford contain eligible tracts experiencing various economic pressures. Rural Oregon—particularly timber-dependent communities in southern and coastal regions, agricultural areas in eastern Oregon, and former mill towns throughout the state—presents widespread NMTC opportunities due to natural resource industry decline, limited economic diversification, and population challenges.
Tribal lands represent significant NMTC opportunities in Oregon. The state’s nine federally recognized tribes—including the Confederated Tribes of Grand Ronde, Confederated Tribes of Warm Springs, Confederated Tribes of Siletz Indians, Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, Coquille Indian Tribe, Cow Creek Band of Umpqua Tribe of Indians, Burns Paiute Tribe, Confederated Tribes of Umatilla Indian Reservation, and Klamath Tribes—govern substantial territory where conventional capital access remains constrained.
The program supports sectors central to Oregon’s economic priorities: clean technology and renewable energy manufacturing, advanced manufacturing including semiconductor and precision components, healthcare infrastructure, technology and innovation spaces, food processing and agricultural value-chain facilities, forestry products diversification projects, outdoor recreation infrastructure, and mixed-use urban developments. CBO Financial connects Oregon projects with regional and national CDEs, navigating compliance requirements while ensuring projects advance NMTC financing services objectives aligned with state economic development goals.
Eligible Projects and Borrowers
Oregon projects eligible for NMTC financing address critical infrastructure and economic development needs across the state’s diverse regions. Clean technology and renewable energy projects align exceptionally well with Oregon’s environmental leadership and clean energy goals. Solar panel manufacturing, battery component production, electric vehicle charging infrastructure, energy storage systems, and clean technology research facilities qualify when located in eligible census tracts and create accessible employment opportunities. Oregon’s commitment to carbon neutrality and clean energy creates substantial opportunities for NMTC-financed manufacturing supporting these sectors.
Advanced manufacturing facilities represent another strong NMTC category. Semiconductor and microelectronics manufacturing, leveraging Oregon’s established tech sector presence, precision machining operations, aerospace components, outdoor recreation equipment manufacturing, and food processing machinery production, all qualify when demonstrating job creation in low-income communities. The state’s manufacturing workforce and infrastructure support sophisticated production operations.
Healthcare infrastructure projects remain critically important given Oregon’s rural healthcare access challenges. Rural hospital stabilization and modernization, federally qualified health centers, specialty clinics, behavioral health facilities, substance abuse treatment centers, dental clinics, and telehealth infrastructure qualify when serving underserved populations. Oregon’s challenges with mental health access, rural provider shortages, and healthcare costs make healthcare facilities particularly compelling NMTC candidates.
Food processing and agricultural infrastructure projects support Oregon’s diverse agricultural economy. Specialty crop processing facilities, craft beverage production, including Oregon’s renowned wine and beer industries, value-added food manufacturing, cold storage and distribution facilities, and farm-to-market infrastructure qualify for NMTC support. Sustainable agriculture and organic food production facilities align with Oregon’s values and market positioning.
Forestry products diversification projects help timber-dependent communities transition to sustainable economic models. Advanced wood products manufacturing, biomass energy facilities, mass timber production, and sustainable forestry operations qualify when serving low-income communities. Technology and innovation spaces—including incubators, accelerators, makerspaces, and research facilities—qualify when spurring economic development in transitioning communities or serving underserved entrepreneurs.
Outdoor recreation infrastructure—including climbing gyms, bike parks, outdoor gear retail and rental facilities, and tourism support infrastructure—leverages Oregon’s outdoor recreation economy. Educational facilities such as charter schools, early childhood education centers, STEM learning facilities, and workforce training centers address academic needs and qualify for financing.
Downtown revitalization projects in Oregon’s smaller cities—Medford, Klamath Falls, Coos Bay, Roseburg, Albany, Pendleton—leverage NMTC to transform underutilized properties into vibrant mixed-use developments. Historic building rehabilitation in older communities creates modern commercial space while preserving character.
Eligible borrowers include for-profit businesses, nonprofit organizations, tribal entities, and local government authorities. Tribal projects require specialized structuring given jurisdictional considerations on reservation lands. CBO Financial creates comprehensive capital stacks through about CDFI resources that combine NMTC with conventional debt, equity, Business Oregon incentives, tribal lending programs, USDA financing for rural projects, and other complementary sources tailored to Oregon’s development landscape.
Benefits of the NMTC Program for Oregon
The NMTC Program delivers substantial economic benefits to Oregon communities while providing borrowers with advantageous financing structures. The 39% tax credit significantly 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 Oregon—clean technology manufacturing facilities, advanced wood products plants, healthcare campuses—this cost reduction frequently determines project feasibility in the state’s high-cost development environment.
Beyond financial mechanics, NMTC investments generate measurable community impact. Job creation and retention constitute primary program objectives, with projects committing to creating positions accessible to low-income individuals. In Oregon’s rural counties and former timber communities, where employment alternatives are limited and younger residents migrate to urban areas, quality job creation carries substantial importance for community sustainability and economic diversification.
Oregon’s timber-dependent communities particularly benefit from NMTC’s ability to finance economic diversification projects. Communities that relied on logging and mill operations for generations now need new economic engines. NMTC-financed manufacturing facilities, healthcare infrastructure, tourism developments, and technology centers help these communities build sustainable, diversified economies less vulnerable to natural resource industry cycles.
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 Oregon’s rural areas and smaller cities, where conventional lenders may perceive elevated risk, and individual projects can substantially impact local economies. Oregon’s tribal nations benefit from NMTC’s improved capital access. Projects on tribal lands have utilized NMTC financing for healthcare facilities, cultural tourism enterprises, natural resource management operations, and commercial developments. These investments build wealth and infrastructure in tribal communities while supporting sovereignty and self-determination.
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 valuable for projects with extended development timelines or those serving markets with limited immediate revenue potential. To evaluate your Oregon project’s NMTC potential, connect for free project analysis with CBO Financial’s experienced team.
Regulatory & State Development Framework
Oregon’s robust economic development infrastructure supports NMTC deployment through various state-level programs and agencies. Business Oregon, the state’s economic development agency, administers numerous incentive programs that complement NMTC financing, including the Strategic Investment Program, Enterprise Zone tax credits, Oregon Investment Advantage, and various infrastructure and workforce development programs. Understanding how to layer these state incentives with federal NMTC benefits can dramatically enhance project economics.
The Oregon Business Development Department provides loan programs and technical assistance that may complement NMTC transactions. For clean energy and environmental projects, the Oregon Department of Energy administers various incentive programs that can enhance NMTC project returns. The state’s commitment to ecological goals creates substantial policy support for qualifying projects.
For timber-dependent communities, the Oregon Department of Forestry works with rural communities on economic transition strategies. Federal resources through the U.S. Forest Service and rural development programs can complement NMTC financing in these areas. The Oregon Economic Development Districts provide regional coordination and help identify available resources.
For tribal projects, relationships with Oregon’s nine federally recognized tribes and the Commission on Indian Services facilitate coordination between tribal governments, state agencies, and federal programs. CBO Financial brings specialized experience in structuring NMTC transactions for tribal enterprises, navigating unique legal and regulatory considerations.
Regional economic development organizations—including Greater Portland Inc., Eugene Area Chamber of Commerce, Travel Southern Oregon, and various county and tribal economic development offices—provide project support and help navigate local incentive programs. For food and agriculture projects, the Oregon Department of Agriculture can provide connections and technical assistance.
The Oregon Infrastructure Finance Authority provides financing for public infrastructure that may support NMTC projects. For projects involving historic preservation, state historic tax credits can complement NMTC when combined with federal landmark credits.
CBO Financial ensures projects meet both federal NMTC compliance requirements and Oregon’s state regulatory framework. We coordinate timing between NMTC closing schedules, Business Oregon incentive applications, tribal government approvals for reservation projects, environmental reviews, including Oregon’s land use planning system, and local approval processes. Our understanding of Oregon’s ecological values and regulatory expectations—including the state’s unique land use planning framework—streamlines project execution while ensuring community support.
Get Started with NMTC Financing in Oregon
If you’re developing a project in an Oregon low-income community—whether in Portland’s urban neighborhoods, timber-transition communities, coastal regions, eastern Oregon’s rural areas, or on tribal lands—NMTC financing merits thorough evaluation. The program’s capacity to reduce capital costs while attracting impact-focused investment to underserved areas makes it uniquely powerful for addressing Oregon’s development challenges, particularly supporting economic diversification in resource-dependent communities and expanding opportunity beyond major metropolitan areas.
CBO Financial’s approach begins with a comprehensive project assessment: verifying census tract eligibility, analyzing community impact potential, evaluating NMTC suitability relative to Oregon’s numerous other incentive programs, including Business Oregon resources and opportunity zone benefits, and identifying optimal CDE partners. We then develop customized capital stacks that may combine NMTC with conventional debt, equity investments, Business Oregon incentives, tribal lending programs, USDA financing for rural projects, and other complementary sources.
Oregon clients benefit from our established relationships with CDEs, tax credit investors, and lenders active in Pacific Northwest markets. We understand Oregon’s unique development context—the state’s environmental leadership and clean energy focus, the challenges facing timber-dependent communities, the opportunities in advanced manufacturing and technology sectors, the importance of sustainable development practices, and the cultural considerations essential to successful community development. This Oregon-specific expertise increases NMTC allocation success rates and streamlines transaction execution.
Project size shouldn’t discourage NMTC exploration. Oregon transactions ranging from $3 million to $75 million regularly close using sophisticated structuring approaches tailored to the state’s markets. Early engagement with experienced advisors who understand both NMTC mechanics and Oregon’s specific development environment maximizes success potential. Connect with NMTCA advisory services overview professionals at CBO Financial today to discover how NMTC can transform your Oregon community development vision into reality.