The Delaware New Markets Tax Credit (NMTC) application was developed by the CDFI Fund, and CBO Financial can help you figure out how well your application will score.
The New Markets Tax Credit program is a federal tax credit that incentivizes service and real estate developers to invest in lower-income locations in Delaware. A huge part of the application figures out whether the Delaware location served by the advancement is low-income, or underserved in particular unique ways.
Standard approval for the Delaware NMTC program calls for a development to be in a census system with earnings at or lower than 80 percent location typical income, or hardship to be higher than 20 percent. (Area mean earnings describes the average family income of the state, or if the tract remains in a Metropolitan Statistical Area with a higher mean family income than the state as an entire, the average household income of the MSA.).
CBO Financial syndicates federal New Markets Tax Credits to stimulate retail corridors, clean up brownfield locations and reinforce investment projects in housing, schools and neighborhood services in Delaware.
There are 2 methods to access the program. To fund a single project, you will require to obtain CDEs that presently have an allocation and have an investment strategy that matches your business design and geographical area.
If you have a rather big job or a pipeline of jobs in need of financing, the best option is to form a CDE and apply directly for an allowance of NMTCs.