Indiana New Markets Tax Credit

The Indiana NMTC tax program boosts new financial investments in distressed localities

The Indiana New Markets Tax Credit program is a federal aid plan created to incentivize investments into low-income places, supplying around 25% of venture prices in adaptable, under market lending that is usually forgiven at the end of the 7-year compliance period.
Indiana NMTC

The Indiana NMTC program facilitates investment decisions in distressed communities for economic revitalization

NMTC investors make financial commitments in organizations referred to as Community Development Entities (CDEs) which subsequently provide funding to companies in low-income areas. The purpose of the program is to spur desirable economic revitalization in these spots.

A CBO Financial Subsidiary, Community Development Funding, LLC was one of only 66 teams to earn NMTC allocation in Round 1 in 2003, and one of 62 groups to receive an allocation in Round 2 - one of only ten organizations to receive both 1st and 2nd round allotments. Ever since, the CBO team has carried on to secure even more allowances for our own CDE, and assisted multiple customers with forming CDEs and competently requesting a direct NMTC allotment award. NMTCs produce benefits to tax credit investors, companies that need to have capital, and state and local government and economic development authorities.

Indiana NMTC Lending Outline

Discover the specific benefits to recipients, investors, and the US Economic Development Administration (EDA) from the NMTC Plan.
States - Municipalities - EDAs
Build Communities in Indiana

Borrower Benefits

  • Prospective new or alternative provider of financing for approved borrowers in Indiana
  • Provide resources when formerly not available in Indiana
  • Lead to accessibility of working capital in Indiana at considerably lower cost than standard lenders
  • Result in conversion of up to 30% of Indiana venture financial obligation to borrower equity
Leverage Tax Credits in Indiana

Indiana Investor Benefits

  • Indiana NMTC essentially ensures return of investment plus a return on the investment regardless of borrower performance
  • Indiana Financiers can even more increase investment return and Indiana job aids with additional tax credits (e.g., historical and renewable tax credits).
Facilitate Economic Revitalization in Indiana

Public Benefits

  • Chance to integrate public financing with Indiana tax credits to induce advancement.
  • Potential additional sources of income to company as a CDE.
  • Prospective positive financial revitalization in these Indiana locations.

Meaningful considerations for NMTC Programs financing for Indiana

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Marginalized Regions in Indiana

A low-income neighborhood is a demographic area with a minimum of 20% hardship, or one that has an average family income that is at or below 80% of the locality's mean household income.

Eligible Indiana NMTC Program Investments

Investments are made in the kind of equity-like lending to businesses situated in low-income census tracts or ones that mainly serve or mostly utilize low-income persons.

This financing usually is applied as "space funding" for the advancement of commercial, industrial and retail realty tasks (including community centers).

Other NMTC projects may also consist of for-sale housing designated for moderate-to-low-income households, renewable innovations, and sustainable, environmentally friendly innovations running on a business scale.

Plan to Gain Access to NMTC in Indiana

The Indiana New Markets Tax Credit (NMTC) application was established by the CDFI Fund, and CBO Financial can assist you figure out how well your application might score.

The New Markets Tax Credit program is a federal tax credit that incentivizes organization and property developers to invest in lower-income regions in Indiana. A major part of the application determines whether the Indiana location served by the development is low-income, or underserved in certain unique manners.

Standard eligibility for the Indiana NMTC program requires a property development to be in a census region with earnings at or lower than 80 percent area mean earnings, or poverty to be higher than 20 percent. (Area mean earnings describes the median family income of the state, or if the system is in a Metropolitan Statistical Area with a higher typical household income than the state as an entire, the typical family earnings of the MSA.).

CBO Financial syndicates federal New Markets Tax Credits to energize retail corridors, tidy up brownfield locations and enhance investment projects in real estate, schools and area services in Indiana.


There are two methods to connect to the program. To money a single project, you will require to get CDEs that presently have an allowance and have a financial investment technique that matches your company model and geographic place.

If you have a relatively big job or a pipeline of tasks in requirement of financing, the finest option is to form a CDE and apply straight for an allocation of NMTCs.

Some Terms to be Be Completed by the Client to Qualify for Indiana NMTC Programs

The borrower should be an authorized Active Low-Income neighborhood organization (QALICB), which is an organization that meets the list below guidelines:

  • The borrower is is a corporation for profit or not-for-profit), or a partnership
  • It actively conducts any operations with the exception of residential rental, property development, sale or licensing of intangibles, golf course, golf club, massage parlor, hot tub facility, suntan center, racetrack, off-sale liquor
  • Less than 5% of its possessions include "antiques" (e.g., antiques, jewelry, white wine, and so on).
  • Fewer than 5% of its assets include "financial residential or commercial property" (e.g., stocks, bonds, money besides reasonable working capital).
  • 40% of its tangible assets are located in a low-income neighborhood.
  • 40% of staff member services are conducted in a low-income community.

Relevant Information Regarding NMTC Programs in Indiana



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