The New Markets Tax Credit (NMTC) Program drives essential investment throughout Washington’s economically diverse communities. From Seattle’s urban neighborhoods to Spokane’s revitalizing corridors, from Tacoma’s waterfront redevelopment zones to the timber-transition communities of rural Washington, NMTC financing unlocks capital for transformative projects in areas where conventional lending remains insufficient. CBO Financial collaborates with Washington developers, technology companies, aerospace manufacturers, healthcare providers, and community organizations to structure comprehensive financing solutions that strengthen the Evergreen State’s economy while addressing persistent challenges in timber-dependent communities, agricultural regions east of the Cascades, and urban neighborhoods experiencing economic transition.
Washington’s dynamic economy—characterized by technology and software, aerospace and advanced manufacturing, international trade, agriculture, healthcare and life sciences, clean energy, and tourism—creates exceptional opportunities for NMTC deployment. The program provides a 39% federal tax credit to investors who deploy capital in qualified low-income communities, substantially reducing borrowing costs and enabling projects that serve critical community needs. Whether you’re developing technology facilities in the greater Seattle area, expanding aerospace supply chain operations, creating mixed-use developments in Yakima or Vancouver, or building healthcare infrastructure in rural counties, NMTC financing delivers the capital advantage necessary for project success in Washington’s competitive markets.
How the NMTC Program Works in Washington
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 Washington. 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.
Washington contains extensive eligible geography across its metropolitan areas, smaller cities, and rural communities. Seattle and King County feature numerous qualifying census tracts in South Seattle, parts of East King County, and throughout the region. Tacoma, Spokane, Vancouver, Everett, and other urban areas contain substantial eligible geography. Eastern Washington—including Yakima, Wenatchee, Walla Walla, and the Tri-Cities—presents significant NMTC opportunities. Rural Washington—particularly timber-dependent communities in southwestern counties, agricultural areas in central and eastern regions, and former mill towns throughout the state—contains widespread eligible geography due to the decline of the natural resource industry, agricultural consolidation, and limited economic diversification.
Tribal lands represent significant NMTC opportunities in Washington. The state’s 29 federally recognized tribes govern substantial territory where conventional capital access remains constrained. Projects serving tribal communities qualify for NMTC support and deliver significant community impact.
The program supports sectors central to Washington’s economic priorities: technology and software development; aerospace manufacturing and supply chain operations; international trade and logistics facilities; clean technology and renewable energy; advanced manufacturing; healthcare infrastructure; food processing and agricultural value-chain facilities; and mixed-use urban developments. CBO Financial connects Washington projects with regional and national CDEs, navigating compliance requirements while ensuring projects advance project funding loan objectives aligned with state economic development strategies.
Eligible Projects and Borrowers
Washington projects eligible for NMTC financing address critical infrastructure and economic development needs across the state’s diverse regions. Technology and software projects leverage Washington’s concentration of tech companies and innovation ecosystem. Software development facilities, data centers, technology incubators, cloud computing operations, artificial intelligence research facilities, and innovation centers qualify when located in eligible census tracts and create accessible employment opportunities. Washington’s position as a global technology leader creates substantial opportunities for tech-focused NMTC projects beyond Seattle’s core.
Aerospace manufacturing projects leverage Washington’s significant aerospace cluster. Aircraft component manufacturing, composite materials production, precision machining operations, aerospace engineering facilities, and supply chain operations supporting commercial aviation qualify for NMTC support. Washington’s aerospace ecosystem, anchored by major manufacturers and numerous suppliers, offers significant opportunities.
International trade and logistics facilities leverage Washington’s port infrastructure and Pacific Rim connections. Warehousing operations, distribution centers, cold storage facilities, trade processing operations, and intermodal logistics facilities qualify for job creation in low-income communities. Healthcare infrastructure projects remain critically important given disparities in healthcare access between urban centers and rural communities. Hospital expansions, federally qualified health centers, behavioral health facilities, substance abuse treatment centers, rural health clinics, Indian Health Service facility improvements, and telehealth infrastructure all qualify when serving underserved populations.
Advanced manufacturing facilities producing machinery, electronics, clean energy equipment, or other goods qualify if they demonstrate job creation in low-income communities. Clean technology and renewable energy projects align with Washington’s environmental leadership. Solar and wind equipment manufacturing, battery storage systems, hydroelectric technology, energy-efficiency operations, and renewable energy installations that provide community benefits qualify for NMTC support.
Food processing and agricultural infrastructure projects support Washington’s diverse agricultural economy. Apple packing and cold storage facilities, wine production operations, seafood processing leveraging coastal resources, specialty food production, dairy processing, and farm-to-market distribution infrastructure qualify as job-creating activities in low-income communities. Timber transition projects helping former timber-dependent communities diversify their economies represent particularly impactful NMTC opportunities.
Educational facilities such as charter schools, early childhood education centers, tribal schools, STEM learning facilities, and workforce training centers address academic needs and qualify for financing. Cultural facilities, including museums, performing arts venues, and community centers, support Washington’s diverse communities.
Downtown revitalization projects in cities like Tacoma, Spokane, Yakima, Everett, Bellingham, Olympia, and smaller communities leverage NMTC to transform underutilized properties into vibrant mixed-use developments. Waterfront redevelopment projects along Puget Sound create public access and economic opportunity.
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 the CDFI Fund bond guarantee program that combine NMTC with conventional debt, equity, state incentives, tribal lending programs, USDA financing for rural projects, and other complementary sources tailored to Washington’s development landscape.
Benefits of the NMTC Program for Washington
The NMTC Program delivers substantial economic benefits to Washington communities while providing borrowers with competitive financing terms essential in the state’s high-cost development environment. The 39% tax credit significantly reduces effective capital costs, often enabling projects to achieve debt service coverage ratios that satisfy lenders while maintaining operational sustainability. For capital-intensive projects common in Washington—technology facilities, aerospace manufacturing plants, healthcare campuses, large-scale developments—this cost reduction frequently determines project viability.
Beyond financial mechanics, NMTC investments generate measurable community impact aligned with Washington’s development priorities. Job creation remains a central metric, with projects committing to create or retain positions accessible to low-income individuals. In Washington’s distressed communities—whether in South Seattle neighborhoods, Spokane’s East Central area, timber-transition towns, or agricultural communities east of the Cascades—quality job creation is crucial for reducing inequality and providing economic opportunity.
NMTC projects catalyze significant private investment—each allocation dollar typically attracts multiple additional capital dollars, multiplying the program’s economic multiplier effect. This leverage is significant in Washington’s high-cost markets, where project capitalization requirements are substantial and individual projects can meaningfully impact communities throughout the state.Washington’s timber-dependent communities particularly benefit from NMTC’s capacity to finance economic diversification projects. Communities that relied on logging and mill operations for generations now need new economic engines, and NMTC-financed advanced manufacturing facilities, technology centers, healthcare infrastructure, and tourism developments help these communities build sustainable, diversified economies.
Washington’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 supporting tribal sovereignty and economic self-determination.
The program provides patient capital with flexible repayment structures. Unlike conventional loans requiring immediate full debt service, NMTC transactions 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 Washington project’s NMTC potential, request a free project analysis from CBO Financial’s experienced team.
Regulatory & State Development Framework
Washington’s economic development infrastructure supports NMTC deployment through various state-level programs and agencies. The Washington State Department of Commerce administers numerous programs that complement NMTC financing, including the Community Economic Revitalization Board (CERB) program, Public Works Assistance Account, Workforce Training Grants, and various industry-specific initiatives. Understanding how to layer these state resources with federal NMTC benefits can significantly enhance project economics.
The Washington State Economic Development Finance Authority provides financing tools, including tax-exempt bond financing and credit enhancement, that may complement NMTC transactions. For clean energy projects, the Washington State Department of oCommerce’s Clean Energy Fund provides grants and financing that can enhance NMTC project returns.
Local governments in Washington offer additional incentives through Business and Occupation (B&O) tax credits, property tax exemptions, tax increment financing, and various local programs. Seattle, Tacoma, Spokane, and other cities maintain active economic development programs that can enhance NMTC transactions.
Regional economic development organizations—including the Greater Seattle Partners, Greater Spokane Incorporated, Economic Development Board for Tacoma-Pierce County, Greater Vancouver Chamber, and various county economic development councils—provide project support and help navigate local programs. Washington’s Workforce Training and Education Coordinating Board coordinates workforce development resources that strengthen project feasibility.
For tribal projects, coordination with Washington’s 29 federally recognized tribes and organizations,, such assuch as the Northwest Tribal Economic Development Coalition,, facilitates project development. CBO Financial brings specialized experience structuring NMTC transactions for tribal enterprises, navigating Bureau of Indian Affairs requirements and tribal regulatory considerations.
For timber-dependent communities, coordination with Rural Development offices and forestry-related economic development organizations can provide additional resources. The Washington State Department of Natural Resources works with communities on forest-based economic development.
The Port of Seattle, Port of Tacoma (which operates the Northwest Seaport Alliance), and other ports provide resources for logistics and trade-related projects.Washington’s community and technical college system provides workforce training that enhances manufacturing and business expansion projects.
CBO Financial ensures projects meet both federal NMTC compliance requirements and Washington’s state regulatory framework. We coordinate timing between NMTC closing schedules, Department of Commerce program applications, local incentive negotiations, environmental reviews, including State Environmental Policy Act (SEPA) compliance, and tribal government approvals for reservation projects. Our understanding of Washington’s environmental priorities and regulatory expectations streamlines project execution while ensuring community support.
Get Started with NMTC Financing in Washington
If you’re developing a project in a Washington low-income community—whether in Seattle’s urban neighborhoods, Spokane’s opportunity zones, timber-transition communities, eastern Washington agricultural regions, 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 Washington’s development challenges, particularly by supporting economic diversification in resource-dependent communities, expanding the technology sector beyond Seattle, and advancing tribal economic development.
CBO Financial’s approach begins with a comprehensive project assessment: verifying census tract eligibility, analyzing community impact potential, evaluating NMTC suitability relative to Washington’s state and local incentive programs, and identifying optimal CDE partners with experience in Pacific Northwest markets. We then develop customized capital stacks that may combine NMTC with conventional debt, equity investments, state programs through the Department of Commerce, local incentives, tribal lending programs for reservation projects, and other complementary sources.
Washington clients benefit from our established relationships with CDEs, tax credit investors, and lenders highly active in the state’s competitive markets. We understand Washington’s unique development context—the technology sector’s concentration and opportunities, the aerospace cluster’s supply chain needs, the challenges facing timber-dependent communities, the importance of international trade through ports, the environmental expectations for development projects, and the specialized considerations for tribal projects. This Washington-specific expertise increases NMTC allocation success rates and streamlines transaction execution.
Project size shouldn’t discourage NMTC exploration. Washington transactions range from $3 million projects in rural communities to over $150 million developments in major metro areas, all successfully closing using sophisticated structuring approaches. Early engagement with experienced advisors who understand both NMTC mechanics and Washington’s specific development environment maximizes success potential. Connect with tax credit consulting for renewable energy projects professionals at CBO Financial today to discover how NMTC can transform your Washington community development vision into reality.