The New Markets Tax Credit (NMTC) Program drives essential investment throughout Wisconsin’s economically diverse communities. From Milwaukee’s urban neighborhoods to Madison’s innovation corridors, from Green Bay’s revitalizing districts to the paper mill transition communities of the Fox Valley, NMTC financing unlocks capital for transformative projects in areas where conventional lending remains insufficient. CBO Financial collaborates with Wisconsin developers, advanced manufacturers, healthcare systems, food processors, and community organizations to structure comprehensive financing solutions that strengthen the Badger State’s economy while addressing persistent challenges in former manufacturing centers, rural agricultural communities, and tribal lands.
Wisconsin’s multifaceted economy—characterized by advanced manufacturing, agriculture and food processing, healthcare and life sciences, paper and packaging, technology, tourism, and brewing—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 expanding food processing operations, developing healthcare infrastructure in rural counties, creating mixed-use developments in Racine or Kenosha, or building advanced manufacturing facilities along major transportation corridors, NMTC financing delivers the capital advantage necessary for project success in Wisconsin’s competitive markets.
How the NMTC Program Works in Wisconsin
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 Wisconsin. 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.
Wisconsin contains extensive eligible geography across its metropolitan areas, smaller cities, and rural communities. Milwaukee, the state’s largest city, features numerous qualifying census tracts throughout its neighborhoods. Madison, Green Bay, Kenosha, and Racine contain substantial eligible areas. Mid-size cities, including Appleton, Waukesha, Oshkosh, Eau Claire, and La Crosse, include significant eligible geography. Rural Wisconsin—particularly counties in the northern region, agricultural areas in the southwest, and former industrial communities throughout the state—presents widespread NMTC opportunities due to manufacturing job losses, agricultural consolidation, paper industry decline, and limited economic diversification.
Tribal lands represent significant NMTC opportunities in Wisconsin. This state’s eleven federally recognized tribes—including the Menominee Indian Tribe, Oneida Nation, Ho-Chunk Nation, and various Ojibwe bands—that govern substantial territory where conventional capital access remains constrained.
The program supports sectors central to Wisconsin’s economic priorities: advanced manufacturing, including machinery and equipment, food processing and dairy operations, healthcare infrastructure, paper and packaging operations, technology and innovation spaces, brewing and beverage production, tourism facilities, agricultural value-chain facilities, and mixed-use urban developments. CBO Financial connects Wisconsin projects with regional and national CDEs, navigating compliance requirements while ensuring projects advance.eCDEeis is seeking projects in Illinois for new market tax credits objectives aligned with state economic development strategies.
Eligible Projects and Borrowers
Wisconsin projects eligible for NMTC financing address critical infrastructure and economic development needs across the state’s diverse regions. Advanced manufacturing represents a firm fit given Wisconsin’s manufacturing heritage and ongoing industrial evolution. Machinery and equipment production, precision machining operations, automotive parts suppliers, metal fabrication facilities, plastics manufacturing, and industrial automation equipment all qualify when located in eligible census tracts and create accessible employment opportunities.
Food processing and dairy projects leverage Wisconsin’s position as a national leader in dairy production and food manufacturing. Cheese production facilities, dairy processing operations, meat processing plants, specialty food manufacturing, brewing and craft beverage operations, and food distribution infrastructure qualify for NMTC support. Wisconsin’s dairy industry reputation and food processing expertise create substantial opportunities for NMTC-financed expansion and modernization projects.
Healthcare infrastructure projects remain critically important given disparities in healthcare access between urban centers and rural communities. Hospital expansions and modernizations, federally qualified health centers, specialty clinics, behavioral health facilities, substance abuse treatment centers, rural health clinics, Indian Health Service facility improvements, and dental clinics all qualify when serving underserved populations. Wisconsin’s challenges with rural healthcare provider shortages and access gaps make healthcare facilities particularly compelling NMTC candidates.
Paper and packaging industry projects support Wisconsin’s established pulp and paper cluster, particularly in the Fox Valley region. Paper production facilities, packaging manufacturing, specialty paper operations, and paper industry diversification projects qualify when demonstrating job creation in low-income communities. Technology and innovation spaces—including business incubators, accelerators, research facilities, and coworking spaces—qualify when spurring economic development in transitioning communities.
Brewing and beverage production facilities leverage Wisconsin’s strong brewing heritage. Craft breweries, distilleries, cideries, and beverage production operations qualify for NMTC financing. Tourism and hospitality facilities support Wisconsin’s tourism economy. Hotels and lodging facilities in underserved areas, recreation facilities, cultural centers, museums, and tourism support infrastructure qualify when located in eligible census tracts.
Agricultural processing and value-added facilities support Wisconsin’s diverse agricultural economy beyond dairy. Grain processing, vegetable processing, cranberry operations, ginseng processing, and farm-to-market distribution infrastructure qualify for NMTC support. 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.
Downtown revitalization projects in cities like Sheboygan, Beloit, Fond du Lac, Janesville, Superior, and Marinette leverage NMTC to transform underutilized properties into vibrant mixed-use developments. Historic building rehabilitation preserves Wisconsin’s architectural heritage while creating modern commercial space.
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 community development financial institution assistance program that combines NMTC with conventional debt, equity, Wisconsin Economic Development Corporation incentives, tribal lending programs, USDA financing for agricultural and rural projects, and other complementary sources tailored to Wisconsin’s development landscape.
Benefits of the NMTC Program for Wisconsin
The NMTC Program delivers substantial economic benefits to Wisconsin communities while providing borrowers with competitive financing terms. 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 Wisconsin—food processing facilities, manufacturing plants, healthcare campuses, brewing operations—this cost reduction frequently determines project viability.
Beyond financial mechanics, NMTC investments generate measurable community impact aligned with Wisconsin’s development priorities. Job creation remains a central metric, with projects committing to create or retain positions accessible to low-income individuals. In Wisconsin’s distressed communities—whether in Milwaukee neighborhoods, former paper mill towns, or rural agricultural counties—quality job creation carries substantial importance for reducing poverty and maintaining community viability.
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 Wisconsin’s smaller communities and rural areas, where individual projects can substantially impact local economies. A food processing facility creating 200 jobs in a rural county or a mixed-use development anchoring downtown revitalization in a mid-size city represents a transformative investment at the community scale.
Wisconsin’s paper industry transition communities particularly benefit from NMTC’s capacity to finance economic diversification projects. Communities in the Fox Valley and throughout the state that experienced paper mill closures need new economic engines, and NMTC-financed advanced manufacturing facilities, healthcare infrastructure, technology centers, and downtown revitalization projects help these communities build sustainable, diversified economies.
Wisconsin’s tribal nations benefit from NMTC’s improved capital access. Projects on tribal lands have utilized NMTC financing for healthcare facilities, cultural tourism enterprises, gaming 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 Wisconsin project’s NMTC potential, access free project analysis with CBO Financial’s experienced team.
Regulatory & State Development Framework
Wisconsin’s robust economic development infrastructure strongly supports NMTC deployment through comprehensive state and local programs. The Wisconsin Economic Development Corporation (WEDC) administers numerous incentive programs that complement NMTC financing, including the Business Development Tax Credit, Enterprise Zone Tax Credit, Manufacturing and Agriculture Tax Credit, and various workforce development initiatives. Understanding how to layer these state incentives with federal NMTC benefits can dramatically enhance project economics.
The Wisconsin Housing and Economic Development Authority (WHEDA) provides financing tools, including tax-exempt bond financing and loan programs, that may complement NMTC transactions. For manufacturing projects, the Wisconsin Manufacturing Extension Partnership provides technical assistance that strengthens project feasibility.
Local governments in Wisconsin offer additional incentives through tax increment financing, business improvement districts, and various local programs. Milwaukee, Madison, Green Bay, and other cities maintain active economic development programs that can enhance NMTC transactions. Regional economic development organizations—including the Milwaukee 7 regional partnership, Madison Region Economic Partnership, Greater Green Bay Chamber, and various county economic development corporations—provide project support and help navigate local incentive programs.
For tribal projects, coordination with Wisconsin’s’s eleven federally recognized tribes and organizations like the Great Lakes Inter-Tribal Council facilitates project development. CBO Financial brings specialized experience structuring NMTC transactions for tribal enterprises, navigating Bureau of Indian Affairs requirements and tribal regulatory considerations.
The Wisconsin Technical College System provides workforce training through customized programs that add value to manufacturing and business expansion projects. For agricultural projects, the University of Wisconsin Extension and Wisconsin Department of Agriculture, Trade, and Consumer Protection can provide technical assistance.
For paper industry transition projects, coordination with the Fox Cities Regional Partnership and other regional organizations helps identify resources supporting economic diversification. The Wisconsin Department of Natural Resources works with communities on environmental remediation that may support redevelopment projects.
CBO Financial ensures projects meet both federal NMTC compliance requirements and Wisconsin’s state regulatory framework. We coordinate timing between NMTC closing schedules, WEDC incentive applications, local tax increment financing approvals, tribal government approvals for reservation projects, environmental reviews, and local approval processes. Our understanding of Wisconsin’s collaborative economic development culture and relationships with state and regional organizations streamlines project execution across the state’s diverse markets.
Get Started with NMTC Financing in Wisconsin
If you’re developing a project in a Wisconsin low-income community—whether in Milwaukee’s urban neighborhoods, Madison’s opportunity zones, paper mill transition communities, rural agricultural counties, 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 Wisconsin’s development challenges, particularly supporting manufacturing sector evolution, food and agriculture industry expansion, paper industry community transitions, and 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 Wisconsin’s numerous state and local incentive programs, and identifying optimal CDE partners. We then develop customized capital stacks that may combine NMTC with conventional debt, equity investments, WEDC incentives, WHEDA financing, local programs, tribal lending programs for reservation projects, and other complementary sources.
Wisconsin clients benefit from our established relationships with CDEs, tax credit investors, and lenders highly active in Midwest markets. We understand Wisconsin’s unique development context—the manufacturing sector’s importance and evolution, the dairy and food processing industry’s opportunities, the challenges facing paper mill communities, the strengths of the state’s technical college system, and the specialized considerations for tribal projects. This Wisconsin-specific expertise increases NMTC allocation success rates and streamlines transaction execution.
Project size shouldn’t discourage NMTC exploration. Wisconsin transactions range from $3 million projects in rural communities to $100 million developments in Milwaukee and Madison, all successfully closing using sophisticated structuring approaches. Early engagement with experienced advisors who understand both NMTC mechanics and Wisconsin’s specific development environment maximizes success potential. Connect with CBO project professionals at CBO Financial today to discover how NMTC can transform your Wisconsin community development vision into reality.