The Massachusetts New Markets Tax Credit (NMTC) application was created by the CDFI Fund, and CBO Financial can assist you determine how well your application might be considered.
The New Markets Tax Credit program is a federal tax credit that incentivizes organization and property designers to invest in lower-income communities in Massachusetts. A significant part of the application determines whether the Massachusetts area served by the development is low-income, or underserved in certain specific manners.
Basic approval for the Massachusetts NMTC plan calls for a development to be in a census region with earnings at or lower than 80 percent area average income, or poverty to be greater than 20 percent. (Area median earnings refers to the typical household income of the state, or if the tract is in a Metropolitan Statistical Area with a higher average family income than the state as an entire, the mean household earnings of the MSA.).
CBO Financial syndicates federal New Markets Tax Credits to energize retail areas, clean up brownfield locations and reinforce investment projects in housing, schools and neighborhood services in Massachusetts.
There are two ways to connect to the program. To fund a single job, you will need to obtain CDEs that currently have an allowance and have a financial investment technique that matches your organization design and geographic area.
If you have a relatively big task or a pipeline of projects in need of funding, the best alternative is to form a CDE and apply straight for an allocation of NMTCs.