New Markets Tax Credit

Consistent with its cutting edge focus and drive for value, the firm early on recognized an opportunity for the industry to take advantage of a unique program adopted by Congress ten years ago. The New Markets Tax Credit program promotes capital formation in low income communities, and provides banks with a unique and effective tool to drive value for their customers. 

We initially represented a borrower seeking to recapitalize their business and maintain jobs in a low-income community. Our involvement in transactions has since developed into a full NMTC practice. Our experience in corporate finance and tax was a natural fit with the NMTC program, and our relationships with financial institutions and business owners created opportunities for us to represent community development entities (CDE), one-day lenders, Qualified Active Low-Income Community Businesses (QALICB) and bank lenders involved in NMTC transactions.

 The NMTC program provides tremendous opportunity to businesses and real estate projects in distressed communities. KTS has the resources and experience to help you manage the complexities and achieve the benefits of NMTC-advantaged transactions. 

CDE Services:

• Forming, certifying, and qualifying CDEs
• NMTC allocation application assistance
• Structuring and drafting of documents
• Due diligence on projects
• Assistance with management and compliance

QALICB Services:

• Project structuring and documentation
• Negotiating with CDEs and other NMTC parties
• Coordinating closings
• Legal opinions 

Bank Services:

• Representing bank lenders in NMTC transactions
• One day loans

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