The Virginia New Markets Tax Credit (NMTC) application was developed by the CDFI Fund, and CBO Financial can help you identify how well your application may score.
The New Markets Tax Credit program is a federal tax credit that incentivizes business and realty designers to buy lower-income communities in Virginia. A major part of the application identifies whether the Virginia area served by the development is low-income, or underserved in certain unique regards.
Fundamental qualification for the Virginia NMTC plan calls for a property development to be in a census area with income at or lower than 80 percent location typical earnings, or hardship to be higher than 20 percent. (Area average income refers to the typical household income of the state, or if the tract is in a Metropolitan Statistical Area with a higher typical family earnings than the state as an entire, the average household income of the MSA.).
CBO Financial distributes federal New Markets Tax Credits to energize retail areas, tidy up brownfield sites and strengthen financial commitment in real estate, local schools and community services in Virginia.
There are two methods to access the program. To fund a single task, you will need to get CDEs that currently have an allowance and have an investment method that complements your service model and geographic place.
If you have a somewhat big project or a pipeline of tasks in need of financing, the best alternative is to form a CDE and apply directly for an allotment of NMTCs.