Maine New Markets Tax Credits

The Maine NMTC funds promotes unique property investments in low-income neighborhoods

The Maine New Markets Tax Credit program is a federal aid program developed to incentivize investments into low-income areas, generating approximately 25% of program prices in flexible, under market backing that is typically forgiven at the end of the 7-year compliance period of time.
Maine New Markets Tax Credit

The Maine NMTC program facilitates investment decisions in distressed communities for financial rejuvenation

NMTC financiers make investments in organizations understood as Community Development Entities (CDEs) which successively generate loans to businesses in low-income areas. The aim of the solution is to spark favorable financial revitalization in these regions.

A CBO Financial Subsidiary, Community Development Funding, LLC was among just 66 groups to acquire NMTC allowance in Round 1 in 2003, and one of 62 groups to obtain an allocation in Round 2 - one of just 10 companies to get both 1st and 2nd round allowances. Because then, the CBO team has advanced to acquire extra allowances for our own CDE, and helped a wide range of clients with creating CDEs and effectively making an application for a direct NMTC allocation award. NMTCs produce advantages to tax credit investors, organizations that are in need of capital, and state and city government and economic development bodies.

Maine New Market Tax Credits Financing Format

Review the different perks to recipients, investors, and the US Economic Development Administration (EDA) from the New Markets Tax Credit Plan.
States - Municipalities - EDAs
Build Communities in Maine

Borrower Benefits

  • Potential new or alternative supply of financing for approved borrowers in Maine
  • Supply capital when formerly not available in Maine
  • Result in supply of funding in Maine at substantially lower cost than traditional loan providers
  • Lead to conversion of approximately 30% of Maine venture debt to customer equity
Leverage Tax Credits in Maine

Maine Investor Benefits

  • Maine NMTC basically guarantees return of investment plus a return on the financial investment no matter debtor performance
  • Maine Financiers can further increase financial investment return and Maine task aids with extra tax credits (e.g., historic and sustainable tax credits).
Facilitate Economic Revitalization in Maine

Public Benefits

  • Chance to combine public financing with Maine tax credits to cause development.
  • Potential extra sources of income to firm as a CDE.
  • Potential positive economic revitalization in these Maine areas.

Essential considerations for NMTCs funding for Maine

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Troubled Maine Areas

A low-income community is a census zone with a minimum of 20% hardship, or one that has a typical family earnings that is at or listed below 80% of the location's median family income.

Qualifying Maine New Market Tax Credits Financing

Investments are made in the type of equity-like loans to organizations found in low-income census systems or ones that predominantly serve or mostly utilize low-income individuals.

This funding generally is applied as "gap funding" for the advancement of industrial, commercial and retail property jobs (including neighborhood facilities).

Other NMTC projects may also consist of for-sale real estate designated for moderate-to-low-income families, renewable innovations, and sustainable, environmentally friendly technologies operating on a business scale.

Process to Utilize NMTCs in Maine

The Maine New Markets Tax Credit (NMTC) application was developed by the CDFI Fund, and CBO Financial can help you determine how well your application might be rated.

The New Markets Tax Credit program is a federal tax credit that incentivizes organization and genuine estate developers to buy lower-income locations in Maine. A huge part of the application determines whether the Maine location served by the advancement is low-income, or underserved in particular distinct manners.

Basic qualification for the Maine NMTC program needs a property development to be in a census tract with income at or lower than 80 percent area typical earnings, or hardship to be higher than 20 percent. (Area median earnings refers to the typical family income of the state, or if the tract remains in a Metropolitan Statistical Area with a greater typical family earnings than the state as an entire, the median household earnings of the MSA.).

CBO Financial syndicates federal New Markets Tax Credits to energize retail corridors, tidy up brownfield sites and strengthen investment projects in real estate, local schools and area services in Maine.


There are 2 ways to access the program. To fund 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 geographical place.

If you have a somewhat big project or a pipeline of tasks in requirement of funding, the very best alternative is to form a CDE and apply straight for an allotment of NMTCs.

What Terms to be Be Adhered to by the Investor to be Approved for NMTCs in Maine

The recipient should be an authorized Active Low-Income Community Business (QALICB), which is an organization that satisfies the following guidelines:

  • It is a corporation for profit or nonprofit), or a partnership
  • It actively carries out any operations with the exception of non-commercial rental, projects, sale or licensing of intangibles, golf course, golf club, massage parlor, hot tub center, suntan center, racetrack, off-sale liquor
  • Less than 5% of its properties consist of "antiques" (e.g., antiques, fashion jewelry, white wine, and so on).
  • Less than 5% of its assets include "financial home" (e.g., stocks, bonds, money aside from sensible working capital).
  • 40% of its concrete possessions lie in a low-income community.
  • 40% of worker services are conducted in a low-income neighborhood.

More Details Concerning New Markets Tax Credit in Maine



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