The Iowa New Markets Tax Credit (NMTC) application was made by the CDFI Fund, and CBO Financial can assist you determine how well your application will be rated.
The New Markets Tax Credit program is a federal tax credit that incentivizes service and real estate designers to buy lower-income neighborhoods in Iowa. A huge part of the application identifies whether the Iowa area served by the development is low-income, or underserved in certain specific ways.
Basic eligibility for the Iowa NMTC program requires a project to be in a census zone with earnings at or lower than 80 percent area typical income, or poverty to be greater than 20 percent. (Area average earnings describes the average household income of the state, or if the tract is in a Metropolitan Statistical Area with a greater mean family income than the state as an entire, the typical household earnings of the MSA.).
CBO Financial distributes federal New Markets Tax Credits to energize retail corridors, tidy up brownfield areas and enhance investment in housing, local schools and community services in Iowa.
There are two methods to get access to the program. To fund a single job, you will require to solicit CDEs that presently have an allotment and have a financial investment technique that matches your business model and geographical area.
If you have a relatively large project or a pipeline of projects in requirement of funding, the very best option is to form a CDE and use directly for an allocation of NMTCs.