New Markets Tax Credit (NMTC) Consulting
Duff & Phelps has extensive experience managing the entire life cycle of NMTC allocations and transactions — from certification to successful financial close and post-close compliance.
New Markets Tax Credits (NMTCs) can be a critical, flexible source of capital for development projects and operating businesses in economically distressed areas, including:
- Real estate developers seeking to close a financial gap in a project’s capital stack
- Operating businesses seeking additional working capital or equipment/project financing
- Not-for-profit corporations building community facilities while leveraging a fundraising campaign
Our Services for Project Sponsors (QALICBs)
Our primary goal with QALICBs is to understand the impact the project will have on their community and how that impact translates into a positive result for tax credit equity investors and CDEs. Our approach involves:
- Matching the project sponsor with the appropriate CDEs based on their investment strategy and market opportunities
- Sourcing tax credits, deal structuring and closing transactions featuring federal and state NMTCs
- Incorporating pre-funded Qualified Equity Investments (QEIs) and aligning NMTC financing to other economic incentives
Our Services for Tax Credit Allocatees (CDEs)
We form a true partnership with CDEs in order to gain valuable insights into their goals and objectives of each NMTC project. By aligning ourselves closely with the CDE’s mission and objectives, Duff & Phelps is able to offer a highly streamlined approach that includes:
- Assisting CDEs with preparing, writing and submitting their NMTC application
- Managing all aspects of deal underwriting for the project
- Advising CDEs on project pipeline development
- Developing metrics to measure the community impact and benefit of an NMTC project
Why Duff & Phelps
Our Site Selection and Incentives Advisory team is ingrained in the NMTC professional community, allowing us to leverage our multi-faceted relationships to the advantage of our clients. We have deep-rooted relationships across CDEs, tax credit equity investors and NMTC lenders throughout the U.S., along with extensive industry experience working for operating businesses, real estate developers, CDEs and NMTC investors. Our clients lean heavily on us as a proven partner across the NMTC landscape.
Duff & Phelps' SITE Selector™ product, powered by StageXchange, is the premier marketplace providing economic development offices and growing companies with digital tools and information to identify, analyze, refine and negotiate efficiently for new sites and locations.
Valuation Advisory Services
Valuation and consulting for financial reporting; federal, state and local tax; investment; and risk management purposes.
Innovative tax advisory and compliance services encompassing property tax, sales and use tax, and site selection and incentives.
Real Estate Advisory Group
Leading provider of real estate valuation and consulting for investments and transactions.