incentis group professionals provide comprehensive services to assist Financial Institutions and Community Development Entities (CDEs) in the following areas:

• Determine if NMTC is feasible related to associated costs
• Assist client with application for CDE certification
• Prepare business plan and allocation application for competitive bid process for a NMTC allocation
• Consult with CDE on use of allocations to offer NMTCs to investors
• Assist CDE with identifying use of proceeds to Qualifying Low-Income Community Investments (QLICIs)

incentis group professionals have been involved in a significant percentage of NMTC allocations on the last award period.

NMTCs are offered to investors for “Qualified Equity Investments” (QEIs) in Community Development Entities (CDEs). QEI is any purchase of stock or capital interest in a for-profit corporation or partnership. CDEs are a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments or financial counseling in “Low-Income Communities” (LICs).

The NMTC program permits taxpayers to receive a credit against Federal income taxes for the QEI in an eligible CDE. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year credit allowance period.

Request your free copy of “Understanding New Markets Tax Credits” by sending an E-mail to Jeff Miller – jmiller@incentisgroup.com.

Quick Links and Resources

• See Published Article: The New Markets Tax Credit - - Journal of Multi State Taxation and Incentives - November/December 2004 (PDF Format)