New Markets Tax Credits (NMTCs) are an important financing tool for the community development projects that our clients undertake. Klein Hornig lawyers represent developers, tax-exempt organizations, leveraged lenders, community development entities (CDEs) and qualified active low-income community businesses (QALICBs) in structuring and closing transactions utilizing NMTCs. Our clients often combine NMTCs with State and Federal Historic Tax Credits (HTCs) and Renewable Energy Tax Credits and use conventional (and unconventional) mortgage and leveraged financing.
We are proud to have worked on NMTC financings for charter schools, health centers, adult education facilities, community centers, YMCAs, Boys and Girls Clubs, commercial and retail space, performing arts centers, a science center for a small college, and more. Many of our NMTC projects are twinned with HTCs, including a flagship location for a nonprofit arts center, a nonprofit mixed-use project involving a bookstore, cafe, event space, office space and rental housing, and a commercial condominium development to facilitate the use of Low-Income Housing Tax Credits (LIHTCs), NMTCs and HTCs for a mixed-use residential rental project. In addition to complex tax structuring, these projects often involve challenging real estate issues, including multiple layers of leases, air rights and condominiums. While we always aim for the simplest possible tax and real estate structure that meets the project’s needs, Klein Hornig’s extensive experience is critical in designing – and implementing – the complex structures needed to develop these important projects.